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The surge of zombie companies


If a company has had at least the past three years, during which the profits it earned were not enough to pay off its debts we call it (that is the financial press calls it) a zombie company. It means that company is in such trouble that not only does it not make the kind of profit it needs but the profit isn't enough to pay off the debts. Today one in five traded companies (that is companies whose shares are traded in stock markets) is a zombie. That is double the number in 2013.


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