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They can but only if all market participants act irrationally. Just want to make it clear that it’s not a law of nature that stock prices are bounded at 0. One
by jkhdigital 5y ago
They can but only if all market participants act irrationally. Just want to make it clear that it’s not a law of nature that stock prices are bounded at 0.
One could imagine a different legal regime in which equity ownership actually carried unlimited liability, in which case negative prices would most certainly be a thing.