Who would give a company credit Most wouldn't, that's why...

Who would give a company credit

Most wouldn't, that's why companies go to investors through capital raisings. If you give credit to a speculative company it's no different to an investor buying the stock, it's all high risk. Usually in these scenarios, everyone loses. Creditors benefit more than shareholders if the company manages to avoid bankruptcy, and that's because they're usually avoiding bankruptcy due to a new highly dilutive re=capitalisation at favourable terms for those involved (often creditors are involved too). It renders current shareholders shares worthless and those with options (me) worth even less than worthless.

Directors should be more harshly treated in these circumstances. Deceit should be punished.