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> They [shareholders] deserve nothing, because that's what you should end up with if you own stock in a company that goes bankrupt. During a bankruptcy credito
by htag 4y ago
> They [shareholders] deserve nothing, because that's what you should end up with if you own stock in a company that goes bankrupt.
During a bankruptcy creditors get paid first, and investors are only allowed access to what is left after creditors are paid off. Hopefully a company declares bankruptcy before their total liabilities becomes larger than their total assets, otherwise creditors cannot be paid in full.
Bank bailouts were largely done so banking services are not disrupted. As valuable as SVB was to startups, it's small potatoes to what 2007/2008 bailouts prevented. "Too big to fail" clearly doesn't apply here.