The enough misery stamps before a star bankrupt.

Investing from a certain company or firm is one of the risks done by the investors but before engaging with the institution precise measurement for the profitability, earnings per share, equity valuation, market value, Okun laws, and etc were done.
Though this measure was done by the investors, the risk is still enveloped in investment. Bankruptcy of institution is still not measurable because forecasting of profits and earnings for future is still imaginary. Though there is a formula for forecasting or trends for the future earnings, 100% efficiency are still unmet. Meaning if bankruptcy was declared investors are the losers of the battle field and they are stamps and misery is not enough to overcome their failure.
Generally success and failure of the firm or company depends on the tactics or strategy of the CEO however the CEO can also manipulate everything. They can make a good balance sheet for presentation but the realities are behind the actual settings. Investors have to be more observant and be keen on the balancing the financial statements. Good accountant and econometrician will guide investors in the nice track of the battle of business.

Equity as arts and science

Equity is one of the important elasticities (or elements) in the financial statements.

Aside from equity there were other variables in financial statements, such as cash, revenue, sales, investment, current assets, liabilities, income before extra ordinary item, and working capital. On the other hand, Valuation is the art/science of determining what a security or asset is worth. So, proper equity valuation is a very important issue for a company[1] since it connotes knowing the market value or market capitalization of the company. Viewed form an individual or stockholder’s perspective, it simply means stock price.

Equity valuation therefore means valuing the stock of the corporate entity for purposes of determining worth of the company. In terms of individual share of the stock each stockholder has decisions to make on the basis of knowledge of his or stock worth or stock price. He could them decide to hold, sell or buy the stock and his or knowledge will definitely therefore increase or decrease his or her wealth from stock ownership.

Reference:

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[1] Ohlson, James A., and X. Zhang, 1998,