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I am stock market noob, can you guys answer this question of mine?

> Why is it that so many companies went to shit in the recession, (06-09) and had stock prices of like $150 and now have barely $5?

Basically, why did so many companies start so high back then in early 2000's and now have such low prices?

Is it something to do with issuing more shares since then which devalued the other shares or something? Since there was more to go around?
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because fuck you thats why

dumbass nigger
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>>1739997

Thank you for your kind words, friend.
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bumping for vague interest
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Is this bait?
Mass panic > everyone sells > stock price drops
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>>1740035

But have they been mass panicking since then?

Why didn't it go up or at least up to some near original level before the crash?
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Whole market was just overvalued, when stocks rise or fall rapidly it's called a market correction. The market was overvalued from billions of dollars in bad loans IE Mortgages, major banks started failing --It caused a lot of uncertainty in the market.
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>>1740062

So basically GTXi should have been worth somewhere about what it fell to in 2012 ish?

Like $35-$45?
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>>1739994
if you want to, consider a single share of stock like your lungs. As people invest in them they expand a bit, when you exhale or sell your shares, they shrink.

In this case, people didn't inhale afterwards.
People find other businesses to invest in, not willing to go back in if the fundamentals of the former company are shit. This means that they didn't see any potential for returns in its current state.
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>>1739994
They're stale memes
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Should I buy it?
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>>1739994
In the context of the recession, the decrease in demand in the economy spread across the financial industry. Credit conditions tightened as banks had to tighten their belts, which stopped the flow of loans, and people started defaulting as interest rates rose. As a result, people became homeless and many small business declared bankruptcy, causing more established firms to make less revenue.

Since then, we've had the weakest recovery since WW2 and any economist will tell you that. Demand hasn't returned to where it used to be and there are numerous ways economists debate this. Keynesians say that the government didn't do enough fiscal stimulus during the recession, i.e. it didn't do enough deficit spending (so, for instance, building a road to keep demand up for construction companies and keep people employed). Other economists blame overregulation and legislation like Obamacare for keeping the recovery down. It's a mixed bag.
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