What happens to the shares when the public company like Facebook shutdown?

[Respectedbreakfast795]

I've several questions:

1. What happens to the shares and money when the public company shutdown?

2. Why Sahara chief Subrata Roy arrested? I read many articles but still confused, what he did wrong?

3. Let's say I invested some money in Facebook (just for example) and Facebook shutdown, what happens to my investment? Can I get it back?

4. Angel investors invest in new startups but what if the startup lose all money and fail to build the company? He/She gets sued? All his/her property goes to angel investor?

5. Let's say I started a company and then my company goes public. But after some years I sell all my shares then I'm still the company owner? Or get fired by other investors? Please explain.


Thank you guys!

[ashu]

The social networking company Facebook held its initial public offering (IPO) on Friday, May 18, 2012. The IPO was one of the biggest in technology, and the biggest in Internet history, with a peak market capitalization of over $104 billion. Media pundits called it a "cultural touchstone.

[Crazycarpenter172]

Depends on what you mean by "shutdown", if the company was acquired by another firm, you will be paid x-dollars for each share in which it was sold at. If the company goes into bankruptcy and has to shut down (like Enron), you will lose all your money. An investment is considered a risk, and there's no guarantee on whether or not you will make money.

If you start a company and it goes public, and you have shares, the number of shares you own divided by the number of outstanding/issued shares is the percentage of the company you owned (in most cases). However, if you sell all of your shares (again, using a simple example), you will no longer own the company.

[Ray]

Your questions are too simplistic. What do you mean by "when a company shuts down"?
A company may start to lose money and run out of cash to continue its operations (like pay their employees). The company then becomes insolvent (not enough money to pay creditors). It can then file for voluntary liquidation or one of its creditors will file for compulsory liquidation. Maybe receivers will be appointed to run the company down in an orderly fashion. Assets have to be sold to pay secured creditors and then unsecured creditors. The share price will collapse. The stock exchange listing may have to be cancelled.
The share quote may be used to reverse a new business into it (shell). etc. etc. Whatever happens it is bad news for the shareholders: they are unlikely to get any money back as they are last in the queue and usually get shafted.