IPOs, bankruptcy, mergers and splits
Companies don't live forever
00:57 Mins Read
What’s the life of a company like? That’s an interesting question, and you’ll find the answer in this video.
Companies don't live forever So, what happens to them eventually? Sometimes, two or more companies engaged in the same line of business Combine to create a new company. This is known as a merger. In some cases, a larger company acquires a smaller company This is known as an acquisition. A company’s life can also end due to bankruptcy. Bankruptcy means that a company’s assets are not enough to repay its debts. When a company is declared bankrupt, Its shares lose value. And they are delisted from the stock exchange. If you’re a shareholder in a company that is declared bankrupt, What happens to your investments? Find out more about this in the next chapter on Smart Money.