>I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale.
I'm not clear on why your next sentence is:
>But it is clear they were doing it out of bad-faith to the new investors.
I'm not clear on why your next sentence is:
>But it is clear they were doing it out of bad-faith to the new investors.
Where is the "bad-faith" in caveat emptor?