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Identify two main stakeholders and explain how they are affected by the Lehman Brothers bankruptcy. Provide explanation for your answer.

User Dcpomero
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Final answer:

The Lehman Brothers bankruptcy affected employees and shareholders negatively.

Step-by-step explanation:

The Lehman Brothers bankruptcy had a significant impact on various stakeholders. Two of the main stakeholders affected by the bankruptcy were the employees of Lehman Brothers and the company's shareholders.

Employees: The bankruptcy resulted in the loss of jobs for all 25,000 employees of Lehman Brothers. Many employees not only lost their income but also their retirement savings and benefits which were tied to the company's stock. The bankruptcy also created a sense of uncertainty and insecurity in the financial industry, making it difficult for employees to find new job opportunities.

Shareholders: The bankruptcy led to a complete loss of value for the shareholders of Lehman Brothers. The company's stock became worthless, causing shareholders to suffer financial losses. Shareholders who had invested heavily in Lehman Brothers saw their investments wiped out, resulting in significant financial setbacks.

User Palani Kannan
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