2013年11月26日星期二

If a company liquidates today with market cap lesser than stockholder equity, will you profit?

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Hi. so like i noticed there are some companies especially those where investors don't see any future growth for, that have a market cap lesser than the shareholder equity. What if you owned that stock and the company decided to liquidate today. Would'nt you get more from the liquidation than if you simply sold it? Let's assume a company had $2M market cap and shareholder equity or net tangibles of $10M and the company had 1M shares outstanding. That's $2 per share on the market. but if liquidated worth $10 per share. Is that theorhetically possible or in real life would never happen?

If a company liquidates today with market cap lesser than stockholder equity, will you profit?

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