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Hyperthetical question: stock market at 0?

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katja328 Posted: Wed, Oct 15 2008 4:31 PM

What would happen, hyperthetically speaking, if any of the indices ended up at 0?

I have to admit I don't quite understand the stock market, in order to sell something, you have to have a buyer, if there's no buyer, you are still stuck with your shares, except they are now worth nothing. Correct?

Sometimes "majority" simply means that all the fools are on the same side

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katja328:
I have to admit I don't quite understand the stock market, in order to sell something, you have to have a buyer, if there's no buyer, you are still stuck with your shares, except they are now worth nothing. Correct?

They should always be worth a small percentage of the underlying capital assets of the company if any were to be left over after a liquidation.

Even after Enron's implosion they sent me a check for $0.04 or something crazy like that IIRC.

They can't fall below zero since investors are only liable for the amount they invested and no more unless in cases of illegal activities.

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