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What would “invalidating stocks” even mean?

by nlitened 6y ago

baybal2 6y ago
Here, invalidate stock shares
- nlitened 6y ago
  Yeah, but what does it mean? To revoke ownership of the company from its owners? Who then gets to own the company and why? Or does it mean the company should cease to exist, and all employees should be fired immediately? We should deny honest people from getting their salaries?
  - baybal2 6y ago
    To declare their shares of having no more legal power than toilet paper.
    - nlitened 6y ago
      But owning shares mean owning a part of a company? Does that mean that when a company’s shares are invalidated, then the company is now worth zero, and anybody can buy it for a penny? Are the owners forced to sell everything for a penny, or they are allowed to choose, when to sell and at what price? Why would the price be different from current stock price?
      - baybal2 6y ago
        One way, or another, whomever owned the company through shares gets his wallet lightened by the amount of shares gone. They will think twice before bidding on something this underhanded again.
      - ardy42 6y ago
        > But owning shares mean owning a part of a company? Does that mean that when a company’s shares are invalidated, then the company is now worth zero, and anybody can buy it for a penny? Are the owners forced to sell everything for a penny, or they are allowed to choose, when to sell and at what price? In real life, bankruptcy usually ends up essentially invalidating the shares of a company. Depending on the method of bankruptcy, the company continues to exist, but the owners of the existing shares loose any claim to anything. If "invalidate stock shares" of a public company became some kind of sanction for improper behavior, it would probably be coupled with some kind of process to transfer ownership? Invalidating all shares in a company without further process to reallocate ownership is an interesting hypothetical. I suppose the organization would become something like abandoned property and escheat to the government.
  - insulanus 6y ago
    If you delist a company in country B, you stop all investment in that company, and you create a chilling effect on future investment. No change in company ownership. Business carries on in country A. People can get new jobs.

What would “invalidating stocks” even mean?

baybal2 6y ago

Here, invalidate stock shares

nlitened 6y ago
Yeah, but what does it mean? To revoke ownership of the company from its owners? Who then gets to own the company and why? Or does it mean the company should cease to exist, and all employees should be fired immediately? We should deny honest people from getting their salaries?
- baybal2 6y ago
  To declare their shares of having no more legal power than toilet paper.
  - nlitened 6y ago
    But owning shares mean owning a part of a company? Does that mean that when a company’s shares are invalidated, then the company is now worth zero, and anybody can buy it for a penny? Are the owners forced to sell everything for a penny, or they are allowed to choose, when to sell and at what price? Why would the price be different from current stock price?
    - baybal2 6y ago
      One way, or another, whomever owned the company through shares gets his wallet lightened by the amount of shares gone. They will think twice before bidding on something this underhanded again.
    - ardy42 6y ago
      > But owning shares mean owning a part of a company? Does that mean that when a company’s shares are invalidated, then the company is now worth zero, and anybody can buy it for a penny? Are the owners forced to sell everything for a penny, or they are allowed to choose, when to sell and at what price? In real life, bankruptcy usually ends up essentially invalidating the shares of a company. Depending on the method of bankruptcy, the company continues to exist, but the owners of the existing shares loose any claim to anything. If "invalidate stock shares" of a public company became some kind of sanction for improper behavior, it would probably be coupled with some kind of process to transfer ownership? Invalidating all shares in a company without further process to reallocate ownership is an interesting hypothetical. I suppose the organization would become something like abandoned property and escheat to the government.
- insulanus 6y ago
  If you delist a company in country B, you stop all investment in that company, and you create a chilling effect on future investment. No change in company ownership. Business carries on in country A. People can get new jobs.