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If GameStop trades below book value, then someone could do a takeover, sell all the assets and make a profit.
by andruby 6y ago
If GameStop trades below book value, then someone could do a takeover, sell all the assets and make a profit.
- jfim 6y agoGood point. Out of curiosity, has that actually happened to a public stock? I'd assume the minority shareholders would have standing for a lawsuit if someone were to do a hostile takeover of a stock and liquidate the assets of the company.
- andruby 6y agoAfaik it used to be popular in the 70s and 80s. It’s sometimes called “Corporate Raid” [0]. In the movie Wall Street, Gordon Gecko wants to buy the airline to sell it for parts. [0] https://en.wikipedia.org/wiki/Corporate_raid#History https://en.wikipedia.org/wiki/Corporate_raid#History