Question

You own stock worth an estimated $1 million in the LPL corporation. In addition, you have personal assets worth another $2 million. LPL becomes insolvent, with debts exceeding assets by S15 million. Your personal wealth will decline by​

Answer 1

Answer: $1 million

Step-by-step explanation:

Your personal wealth includes your assets less your liabilities.

The stock ownership in LPL Corp. of $1 million is part of your assets. If LPL goes insolvent that means you lose $1 million in assets.

Your wealth will therefore reduce by $1 million.