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Suppose that someone is able to buy up enough of your stock to essentially own your company, and they notice that the cost of doing so is less than the value of
by Lexarius 14y ago
Suppose that someone is able to buy up enough of your stock to essentially own your company, and they notice that the cost of doing so is less than the value of all of the things your company owns. Someone could make a profit by buying your company and then butchering it, keeping a few prime cuts for itself and selling off the rest.
This doesn't happen if the raiding company can't put together enough money to make the purchase, or if not enough of the stock holders are willing to part with their shares.