Zombie
Zombie is a company that continues to operate even if it is insolvent or near bankruptcy and unable to meet its financial obligations.
Many research and development companies are potential zombies, because of high costs involved in research operations. For example, if a company tends to create a blockbuster product and its development fails, it could go bankruptcy within days. However, if a company researches bring new and quality product, it could experience large profits and meet its liabilities.
Stocks issued by zombie companies are considered highly risky, and are advisable only to experienced investors.
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