At 1 a.m., which is 1 p.m. in Country A, the investment community in Country A was suddenly bombarded with explosive news about MHB Corporation.
"MHB's debt is about to mature! The current cash is insufficient to repay corporate debt! Directly threatens the ability to sustain operations!"
"MHB sparks an international dispute in the Strait of Country T! Fears of endless international claims!"
It was common knowledge that MHB's corporate debt would mature mid-year.
But what everyone didn't know was that the cash MHB held was actually insufficient to pay off the maturing corporate debt!
Moreover, the second news about international disputes and international claims only added to the uncertainty.
The stock market's biggest fear is uncertainty!
While the cash flow in the first news might be negotiable, the "international dispute" and "international claims" in the second were enough to make many back off immediately.
