An accumulated deficit reduces stockholders’ equity on the balance sheet, which decreases stockholders’ stake in the company. A company with an accumulated deficit has no profits reinvested in its business and relies on its cash or other financing to remain in business. Banks might not lend to a business with an accumulated deficit. If a company’s cash runs out and it fails to turn a profit, it might end up in bankruptcy.
Make the entire world your Oyster Pennies 2 Dollars Investments (P2DI) #Board-27992/
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.