mradigan747 asked:
I am curious about tangible book value. Many people use this metric as an insurance metric to ensure that their investment is secure against the assets of a company. If GM had a tangible book value, and the metric is accurate, why would common stockholders get nothing since the liquidation process should net sales? I understand the creditors should recieve their share, but shouldn’t the common stockholder recieve something since they had a positive TBV?
I am curious about tangible book value. Many people use this metric as an insurance metric to ensure that their investment is secure against the assets of a company. If GM had a tangible book value, and the metric is accurate, why would common stockholders get nothing since the liquidation process should net sales? I understand the creditors should recieve their share, but shouldn’t the common stockholder recieve something since they had a positive TBV?