Eli5: why the shareholders in a company are not liable to pay debts owed by the company?

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Eli5: why the shareholders in a company are not liable to pay debts owed by the company?

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Anonymous 0 Comments

Why should they be? They already have the risk of losing money if the share price goes down.

Why should they be? They already have the risk of losing money if the share price goes down.

Reddit and/or society needs to get rid of this myth that shareholder funds are the same thing as the company’s operating budget.

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