Which of the following happens to stock when I companies profit falls, shareholders get stuck in Sherman payments shareholder stock loses value shareholders are given more stock. Sure Holder was cash in their interest.
When a company's profit falls, shareholders may see a decrease in the value of their stock. This is because lower profits can indicate a decrease in the company's overall financial health, which can lead to a decrease in demand for the stock and thus a drop in its price. Shareholders do not typically receive additional stock in this scenario, unless the company decides to issue more shares as a way to raise funds.
It's also important to note that shareholders do not receive direct cash payments from the company based on their ownership of stock, unless the company decides to issue dividends. Instead, shareholders' returns come from the appreciation of the stock price and potential dividends.