RE: The last 12 months26 Dec 2023 14:08
Debt is also secured against an asset. If your company is worth zero, I can't see a bank lending on that and as the company share price is continually dropping, is that not of concern? "Since the price of a share can fluctuate with market demand, the value of the stock used to secure a loan is not guaranteed over the long term. In situations where a stock loses value, the collateral associated with a loan may become insufficient to cover the outstanding amount.{"