What’s all this talk of people going bankrupt on the stock market?

ransomedbyfire asked: How does this even happen? What? Are these people putting ALL their money in the stock market? I don’t get it. It just doesn’t seem like putting say – $1,000 in would make you go bankrupt. What? Do they come and take all you have when a stock hits bottom?

Why do companies go bankrupt when their stock price drops?

Miqael K asked: If companies only make money from stocks during IPO, why do they go bankrupt when the stock price drops? I can’t make the connection.

What happens to a stock when a company is sold, or goes bankrupt?

JOKER23 asked: For example, i bought a stock and the company went bankrupt, what happens to my stock? i also want to know what happens to a stock when a company is sold to another company, for example bellsouth.

What happens to my stock if a company goes bankrupt?

I own stock in a company that is facing bankruptcy. Will I lose my stock if the company is acquired by another company or will I lose my stock if they go bankrupt and do a reorganization settlement/agreement with their creditors?By: Joe KAbout the Author:

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