Banking

Anatomy Of Bankruptcies: A Cautionary Tale

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Executive Summary

When you watch the stock of a famous American company plummet, you may think you see a bargain of a lifetime. But before you buy any beaten-up stock, ask yourself why it's cheap. If the stock is down because of weak fundamentals, a looming bankruptcy could wipe out most if not all shareholder equity. In other words, you could lose your entire investment.

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