Question: Under standard accounting rules, it is possible for a companys liabilities to exceed its assets. When this occurs, the owners equity is negative. Can this

Under standard accounting rules, it is possible for a company’s liabilities to exceed its assets. When this occurs, the owners’ equity is negative. Can this happen with market values? Why or why not?

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Market values can never be negative Imagine a share of stock selling for 20 This w... View full answer

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