this post was submitted on 03 Nov 2026
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if the stock value dropped 50% will it affect them as much as it would a bank whos investments dropped 50% or loans defaulted
The company will eventually feel it too, but it will take longer. A falling stock prices makes raising capital and borrowing more expensive.
Not really. The shareholders will experience the pain, but the company probably wouldn't, as their liabilities are rarely tied to share price.
that's what I thought. Google losing 50% just means my retirement fund got smaller and there is no downside for google
Sorta, stock value is a major selling point and also a means to leverage and/or collateralize loans.
Unless you're planning on retiring soon it hasn't really impacted you either. Losses and gains are only realised when the stocks are sold.