Twenty years ago, your parents invested in Apple. As the years have gone by, the investment has grown. However, if Apple should go out of business and declare bankruptcy, what would happen to your parent's investment?

Question

Hugo Ali

Business

31 July, 23:08

Twenty years ago, your parents invested in Apple. As the years have gone by, the investment has grown. However, if Apple should go out of business and declare bankruptcy, what would happen to your parent's investment?

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Answers (2)

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Pablo Hodge · Answer 1

your parents will only lose the value of their share

Explanation:

Based on the information provided within the question it can be said that if the Apple business were to declare bankruptcy then your parents will only lose the value of their share. That is because the shares are linked to the Apple company, meaning that if they declare bankruptcy the value of those shares will ultimately decrease to 0 and be worthless.

Eliezer Werner · Answer 2

They would lose the value of their shares in Apple

Explanation:

When a company goes bankrupt is simple means that the company lacks the finance to continue running its business operations and also the ability to go into production in commercial quantity hence the shareholders who are the finance powerhouse of the business will lose the value of the shares they hold in the company.

When a company is declared bankrupt by a court order it means the company is unable to pay its outstanding debts which includes paying dividends to shareholders of the company this will lead to the company been liquidated (sold) in other to pay off outstanding debts which includes paying off the shareholders of the company first. but the shares of the shareholders will lose its value in the current market