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The concept of limited liability limits this negative scenario. And my limit buy for the entire US stock market @5cents keeps it from going to exact zero
by cuteboy19 3y ago
The concept of limited liability limits this negative scenario. And my limit buy for the entire US stock market @5cents keeps it from going to exact zero
- spacebanana7 3y agoThere are exceptions to limited liability. Courts can pierce the corporate veil and hold directors or shareholders responsible when a case gets controversial enough. I’m not aware of a recent example of public company shareholders being held liable, but it’s only one Supreme Court decision away.
- nologic01 3y agoLimited liability is a legal argument, a negative price is a market event. The two are only loosely coupled. I can imagine a circumstance where people want to get rid of their stocks because of reputational reasons. People downvoting can't differentiate what is likely to happen from what is possible to happen.