Chapter 7: Bankruptcy liquidation | Stocks and bonds | Finance & Capital Markets | Khan Academy

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  • Опубліковано 22 тра 2024
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    Introduction to bankruptcy liquidation (Chapter 7). Created by Sal Khan.
    Watch the next lesson:
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КОМЕНТАРІ • 51

  • @SergiMedina
    @SergiMedina 4 роки тому +28

    And here we are, 11 years after!

    • @meghusharma7118
      @meghusharma7118 3 роки тому

      could you answer my question

    • @meghusharma7118
      @meghusharma7118 3 роки тому

      please reply

    • @leuc1823
      @leuc1823 2 роки тому

      I am wondering if u actually write these letters with a computer mouse. I have tried it and it is very difficult

    • @g__l7217
      @g__l7217 Рік тому +1

      14

  • @dwijesh009
    @dwijesh009 7 років тому +8

    you are the best, your video cleared all my doubts and now I can read the economy and market news easily with 100% comprehension. Thank you.

  • @khanacademy
    @khanacademy  15 років тому +11

    No, the stock/equity can only go to zero. It cannot be negative. If I own a share of GM, the worse thing that can happen is that it becomes worthless. I wouldn't ever "owe" money to GM's unsecured creditors.

  • @a2zpromotioninfo
    @a2zpromotioninfo 9 років тому +3

    We must get this information out to the general public. Everyday, we have people calling that have bad information on the process. Thank you.

  • @antonioalvarado8502
    @antonioalvarado8502 2 роки тому +1

    Sr what a piece of gold your channel is.

  • @lisalisamattmatt
    @lisalisamattmatt 14 років тому +2

    Thank you for these videos - very informative for the intelligent novice.

  • @eligraham55
    @eligraham55 10 років тому +1

    Great video, thanks Khan!

  • @LECityLECLEC
    @LECityLECLEC 3 роки тому +1

    Superbly done Sal!

  • @ManavSukhija
    @ManavSukhija 7 років тому +1

    Good Job.. Buddy !! You are really good at this ...

  • @kartikeysuwalka3557
    @kartikeysuwalka3557 Рік тому +1

    Still worth watching in 2023 !

  • @bookland1
    @bookland1 Рік тому +1

    Great video!

  • @princejuba
    @princejuba 11 років тому +5

    bonds holders are basically debt investors and share holders are partial owners

  • @fcinternetmarketing
    @fcinternetmarketing 10 років тому +1

    Great Video.

  • @damarine2008
    @damarine2008 11 років тому +1

    Nice video!

  • @junwithgod
    @junwithgod 13 років тому +1

    Thanks for the useful video. I just want to point out one thing. In theory, what you said is true, but in reality, it is a difficulty of enforcing legal rights of lien holder and there is a problem with delays even when the legal rights were to be obtained. In practice, the people with senior debt may find it difficult to take over the promised assets if the assets have fair value in excess of their claims because junior debt holders may have interest as well as others at the bottom of the

  • @abadiblack
    @abadiblack 13 років тому +1

    amazing , you just made me understand something that my professor could not :)
    thanks

  • @dima71387
    @dima71387 9 років тому +2

    At what point does the company decides to file chapter 7? Is there any rules and limitations when value assets has to be maintained at a certain capital level before a company files bankruptcy(liquidation)? For example if the company isn't worth a million dollars(say 200,000) any more are all of the senior secure bond holders are also screwed.

  • @lagunacorona
    @lagunacorona 9 років тому

    so are you saying that buying bonds from a seniority liability creditor would be a better investment than equity stocks? that is what it seems like to me. Please answer. Thank you

  • @sksnkton
    @sksnkton 12 років тому

    what you explain in the second half of the video is that an Collateralize Debt Obligation? is bank debt traded like bonds?

  • @lagunacorona
    @lagunacorona 9 років тому

    the first who get they're money are priority debts over secured?

  • @lagunacorona
    @lagunacorona 9 років тому +1

    i wonder if someone can take out a secured loan using a priority debt like child support collateral? but if there's no item like a car or a property that has real value but a priority debt, can it even be secured? this is fascinating!!!!

  • @NassimHarameinVedas
    @NassimHarameinVedas 14 років тому

    Many of You, in my humble but accurate opinion, would benefit from learning about how the "Federal Reserve" system and banking business work.
    The movie that describes it, in the most coherent way is Zeitgeist: Addendum. Its right in the beginning of the movie, so You don't need to watch the whole 2hours.
    It explains how "Modern Money Mechanics" work with the FED.
    "Money" literally is being created out of DEBT.
    Since 1913, US currency is not exchangeable by gold at banks for a reason.
    Watch it!

  • @iskandertrabelsi555
    @iskandertrabelsi555 8 років тому

    plleeeeeease add arabic subtitle plz plz and tnz alot 4 ur lesonces

  • @wmacorlando
    @wmacorlando 15 років тому

    Have they actually been forced to pay?

  • @MisterTutor2010
    @MisterTutor2010 4 роки тому +2

    I...DECLARE...BANKRUPTCY!!! :)

  • @masakmerah
    @masakmerah 15 років тому

    Sal, if the assets were only 5 mil, and there only enough for Subordinate to get 1 mil back (instead of 2 mil)......doesnt the equity holders owes the Subordinates the difference (1 mil)? dont they have to pay?

  • @Crasshopperrr
    @Crasshopperrr 9 років тому +7

    Is "the next video" the chapter 11? not chapter 8?

  • @AmbalikaSmiti
    @AmbalikaSmiti 14 років тому +4

    One doubt..
    In case of bankruptcy liquidation, does the company payback the principal as well interest to the debt holder?

    • @user-vl8ze8qq9y
      @user-vl8ze8qq9y 4 роки тому +1

      It depends what will they get when they auction off the company assets and what they get after it

  • @credewernke2342
    @credewernke2342 5 років тому +2

    I DECLARE BANKRUPTCY

  • @diedie111590
    @diedie111590 12 років тому +1

    Have you ever taken an accounting class? The dollar sign only has one line through it. $

  • @bond465
    @bond465 11 років тому +2

    math is wrong at the end. you actually have enough to pay the subordinate unsecured in your example.

  • @thegoonist
    @thegoonist 13 років тому

    er 5mil - 1mil - 2mil = 2 mil...so the subordinated should get all their money back?

  • @hansongnaily
    @hansongnaily 3 роки тому

    what is the title of the next video?

  • @hg698f
    @hg698f 14 років тому +1

    what does enlightenment have to do with understanding the uniform commercial code in America? debunk it? debunk what? debunk every conspiracy theory that is expressed and implied in the movie or debunk your statement that money is being created out of debt? that statement isn't even close to being articulated enough to debate.

  • @unpimpedgti
    @unpimpedgti 14 років тому

    Search "Chapter 7 Bankruptcy" on Krustbox (dot) com.

  • @dlbutters7164
    @dlbutters7164 4 роки тому

    I'm here for DarkSydePhil aka PigRoach.

  • @claytin8895
    @claytin8895 12 років тому +1

    Math fail... :P

  • @Treegrower
    @Treegrower 3 роки тому

    MAYBE YOU SPRAYED ASBESTOS ON THE PLAYGROUND

  • @NassimHarameinVedas
    @NassimHarameinVedas 14 років тому

    Please, enlightened one. Debunk it. Words straight from the horses mouth. Read Modern Money Mechanics. Read "The Creature from Jekyll Island : A Second Look at the Federal Reserve".
    Case Closed.
    ∞Hare Krishna, Hare Krsna, Hare Krsta, Hare Christ∞

  • @hg698f
    @hg698f 14 років тому

    you should make your opinions more humble because they're not entirely accurate and not at all precise. Oh and maybe, just for credibility's sake, you shouldn't cite pop-propaganda/ conspiracy theory videos to support your point.