you are viewing a single comment's thread
view the rest of the comments
[–] 51 points 1 year ago (4 children)

What the fuck? How is that even legal? Aren't stocks supposed to be ownership stakes in the company? How can they just take that away?

  • source
  • hideshow 4 child comments
  • [–] 4 points 1 year ago* (1 child)

    In a liquidation sale, common stock holders only get paid if there is money left over after everyone else gets their cut. Creditors, bondholders and preferred stock holders are ahead of them in line.

    It's also worth pointing out that the company is not publicly traded, it's privately owned, so in effect the shares were always worthless. It's not clear to me if they were actually ownership shares or just options against the possibility of the company going public at some point in the future.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 2 points 1 year ago*

    Creditors, bondholders and preferred stock holders are ahead of them in line.

    I can't believe capitalism still keeps surprising me with how fucked up it is.

    It's not clear to me if they were actually ownership shares or just options against the possibility of the company going public at some point in the future.

    See above.

  • source
  • parent