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Money-to-lose

What's There to Lose?


August 15, 2011 | Corporate Finance

What does a stockholder lose when a corporation does not have enough assets to meet the claims of creditors?

Pick an answer:

His or her share of indebtedness
The stock's par value
His or her original investment
Nothing

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What's There to Lose?
By Finance Ocean

What does a stockholder lose when a corporation does not have enough assets to meet the claims of creditors?

Pick an answer:

  1. His or her share of indebtedness
  2. The stock's par value
  3. His or her original investment
  4. Nothing


Answer: # 3

Explanation: The stockholder only loses the original investment that he or she made.

Shareholders have limited liability so they can only lose what they originally invested in the company.

Take another finance quiz at FinanceOcean.org or read up on Corporate Finance.





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