Erica was glad to be one of the first stockholders when her friend Mike's business went public. She bought 100 shares of stock at a price of $2 each. However, the firm hasn't done well. The stock price is now down to $1, and the firm's net worth is a negative $100,000. If the firm goes under, the maximum amount Erica would be out would be:
Erica was glad to be one of the first stockholders when her friend Mike's business went public. She bought 100 shares of stock at a price of $2 each. However, the firm hasn't done well. The stock price is now down to $1, and the firm's net worth is a negative $100,000. If the firm goes under, the maximum amount Erica would be out would be:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Erica was glad to be one of the first stockholders when her friend Mike's business went public. She
bought 100 shares of stock at a price of $2 each. However, the firm hasn't done well. The stock
price is now down to $1, and the firm's net worth is a negative $100,000.
If the firm goes under, the maximum amount Erica would be out would be:
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