The Effect of Corporate Bankruptcy on Stocks and Bonds
As a stock or bond holder, you are part owner of the corporation whose stock or bond you hold. So what happens if that company goes into Chapter 7 bankruptcy? If you are a stockholder, you’ll see a huge drop in the value of your shares. And the worst part is that when it comes to paying back debtors, stockholders are at the very end of the list. This means that if the company goes bankrupt, you take on the most risk. In fact, you shouldn’t expect to be compensated at all. If you are a bondhol
Original post by Sushi Money