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You don't need to try to seek value from the shareholders in a bankruptcy to hurt them. (Doing so would be going against rule of law and as for changing the law
by Nasrudith 2y ago
You don't need to try to seek value from the shareholders in a bankruptcy to hurt them. (Doing so would be going against rule of law and as for changing the law, well do you hear that giant sucking sound of funds fleeing your economy?) Just having their holding's value go to zero is sufficient.
- robocat 2y agoMaybe irrelevant for security flaws, but the point is that externalities can easily exceed market capitalisation. Trading while insolvent is illegal, but that is hard to judge with liabilities. Examples are Johnson&Johnson (public) and Purdue Pharma (private).