What happens when a company shuts down?
All that is solid melts into air. Apparently healthy companies sometimes wind up all of a sudden. As a part owner, all shareholders get paid according to their stake in the company. Ordinary shareholders will be the last to get paid. All debts of the company must be settled first, including the claim on the assets of a company by the preference shareholders. It could well be that ordinary shareholders get nothing if no assets are left after clearing off debts and paying preference shareholders.
