On: Can the stock market go to zero?

[cuteboy19]

The concept of limited liability limits this negative scenario. And my limit buy for the entire US stock market @5cents keeps it from going to exact zero

[spacebanana7 → cuteboy19]

There are exceptions to limited liability. Courts can pierce the corporate veil and hold directors or shareholders responsible when a case gets controversial enough.

I’m not aware of a recent example of public company shareholders being held liable, but it’s only one Supreme Court decision away.

[nologic01 → cuteboy19]

Limited liability is a legal argument, a negative price is a market event. The two are only loosely coupled.

I can imagine a circumstance where people want to get rid of their stocks because of reputational reasons.

People downvoting can't differentiate what is likely to happen from what is possible to happen.