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Stockes with negative EPS shouldn't you have to pay to own that stock? |
IF they have more debt than money coming in how do they pay for it? Since your part owner shouldn't you have to pay? You cannot really have a negative p/e. The whole point of the ratio is to see how long the earnings will pay back the share price. So earnings in this case only mean positive ones (profit). If there are no profits then no p/e. It's nothing to do with debt. Shareholders have no liablility to the company. It is a secondary market. |
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