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A follow up question: how can I check that my own stock is not subject to the same terms? Can publicly traded companies do the same?


Of course. Common stock can always get wiped out by superior classes.


No, not always. Only under specific circumstances like preferences. There are pro rata terms and minority shareholder rights. Something smells fishy about the article, but I suspect it is the journalist’s ignorance.


I think if it’s publicly traded and they aren’t comitting fraud then this situation couldn’t happen. If the company is drowning in debt and unprofitable you would have already lost your money because the stock would have lost value.




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