3 ms·
Bankruptcy is not independent from the stock price. If your company goes bankrupt, its shares are voided.
by jsdwarf 6y ago
Bankruptcy is not independent from the stock price. If your company goes bankrupt, its shares are voided.
- jfim 6y agoYou're right, what I meant is that the share price doesn't affect the finances of the company (eg. a company that sells widgets makes the same amount of money whether their stock is worth $1 or $100000). As you point out, the share price should in theory reflect the value of the company (bankrupt company -> share price of $0), but a fluctuating stock price doesn't really change the value of the company itself (excluding shares that it owns, obviously).