FINRA has just issued an investor alert regarding the bankruptcy of video rental chain Blockbuster. The agency said it has reason to believe that some stock promoters may be attempting to exploit investor confusion regarding the company's proceedings. Blockbuster is a former NYSE-listed company that filed for Chapter 11 bankruptcy on September 23, 2010. In April 2011, almost all of Blockbuster's assets, including the "Blockbuster'' trade name, were acquired by DISH Network Corp. The remaining entity changed its name to BB Liquidating, Inc. According to multiple public disclosures, BB Liquidating has no further business operations or assets, although its shares still trade under Blockbuster's original BLOAQ and BLOBQ symbols. The SEC temporarily suspended trading in BLOAQ on September 29, because of “a lack of current and accurate information concerning the company’s securities due to assertions in third-party press releases to investors concerning, among other things, the company's current financial condition and business prospects." For instance, one report stated that "Blockbuster is Back From the Doldrums" and "is now becoming a promising comeback story." Another website described BLOAQ as a " ... global media entertainment provider, which exited Chapter 11 protection earlier this year…” In fact, the company has not exited bankruptcy, and the company itself stated in a recent SEC filing that even though its shares continue to be quoted on the Pink Sheets, they may have “no value.” FINRA thus wanted to remind investors that bankrupt companies can be targets of online stock tips that can be confusing, inaccurate, misleading and in some cases fraudulent. Additionally, buying or holding shares of a bankrupt company in hopes of that company rebounding is a very risky practice. [FINRA, 10/10/11]