Book Value Per Share Is Negative

If book value is negative where a company s liabilities exceed its assets this is known as a balance sheet insolvency.

Book value per share is negative. But i also buy stocks with negative. So negative equity alone has no meaning. Since preferred stockholders have a higher claim on assets and earnings than.

A firm s book equity is a measure of the value held by a firm s ordinary shareholders. Because book value per share only considers the book value it fails to incorporate other intangible factors that may increase the market value of a company s shares even upon liquidation. I buy stocks all the time most stocks i buy in fact that have positive tangible equity in excess of my purchase price that is they trade below tangible book value.

Now on to your concern.