It sounds like you are thinking of publicly listed companies which have to adhere to strict regulation, much different from privately held companies. Even then

It sounds like you are thinking of publicly listed companies which have to adhere to strict regulation, much different from privately held companies. Even then, there are no guarantees. A company can simply be mismanaged and overvalued as we saw recently with this Danish airline: https://apnews.com/article/scandinavian-airlines-air-franceklm-shares-7e09213b20f61476a5836409cc47e642 https://apnews.com/article/scandinavian-airlines-air-francek...