Boston Clothing Limited was a private company that experienced cash flow difficulties and hired new management to turn the company around. The company then went public and the shares sold at $15 per share. Within months, however, the share price plummeted and Beatle Clothing Inc. acquired the company for $1 per share when it was on the threshold of bankruptcy.
Who were the stakeholders in this situation? Explain what was at stake and why and how they were affected when the share price plummeted.