When a company goes bankrupt, its stocks become worthless. The company’s assets are liquidated in order to repay its debts, and the shareholders typically receive nothing in the process. The company’s creditors, such as its lenders and suppliers, are usually the first to be repaid. The proceeds are used to pay off the company’s liabilities […]
What Happens To Stocks If A Company Goes Bankrupt
When a company goes bankrupt, it ceases to exist as a legal entity. This means that it can’t pay its debts, which usually means its creditors – including its shareholders – will get a portion of what they’re owed. The process of a company going bankrupt is called liquidation. The company’s assets are sold off […]
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