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if youamp;#39;ve ever wondered whether stockholders equity can be negative the answer is yes it seems odd because sometimes people see stockholders equity as being the value of the company but you have to remember it is the book value of the firm it is not the market value the stockholders equity does not tell you what you would have to pay in order to buy the company k we think of that as though the market value of the companyamp;#39;s equity stockholders equity is just telling you the value on the balance sheet and itamp;#39;s against teams odd having a negative value of something but think about it like this weamp;#39;ve got assets equal liabilities plus equity and all this is saying is letamp;#39;s say we had a hundred dollars of assets and then we had a hundred and twenty dollars of liabilities weamp;#39;d have negative stockholders equity of twenty dollars now how does this happen you might be wondering how do we get in this scenario but this is negative because if youamp;
