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Question 4 (1 point) ✓ Saved Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drillin
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Answer #1

$600

When a corporation goes bankrupt, the entire investment will be lost. Bankrupcy means the assets will not available to pay the liabilities of the corporation. The stock holders are the last persons who receive payment when a company is liquidated. When it is not possible to pay liabilities, the payment to stock holders do not arise. Thus he will his entire investment od $600.

And stock holders liabilities is limited to the extented to the par value of the stock. If the stock is fully paid, there will be no further liability for him.

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