3 ms·

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

• 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.