How Low Can It Go?

I often hear people say that a particular stock is so cheap, “how much lower can it really go?” The answer is, it can go a lot lower. A stock can drop 99% and it’s still not at zero. It can drop another 99%, and it’s still worth something. In fact, a stock can drop 99% many, many times, and still not reach zero.
Delistings don’t make a lot of news, but they happen every week. Here’s a graph of issuers on the NASDAQ since 2003:
ndaqisu.png

Posted by on June 21st, 2006 at 6:28 am


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