My partner was informed last week that her publicly traded company is shutting down, and from my current understanding there was no buy out/merger or bankruptcy filing. Shareholders didn’t vote on it and it is not a single majority owned company (over half company owned by individuals or public companies). I’d like to know the scenarios in which this could happen.
In: Economics
>… publicly traded company is shutting down, and from my current understanding there was no buy out/merger or bankruptcy filing. Shareholders didn’t vote on it and it…
Shareholders voted on the CEO and the board and gave them the powers to do what’s best for the ~~company~~ investment.
From the sound of it, the CEO decided that the company is losing money (or about to be losing money) and decided to pull the plug ASAP. To workers like your partner, that’s effectively the same thing as the company evaporating overnight, but to the shareholders of the corporation all of the corporation’s assets still exist. To them, firing everybody is simply a way to spend less money keeping the lights on and keeping salaries paid between now and when they have their shareholder meetings to decide how to ultimately disburse all the company’s assets.
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