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- In financial markets, some companies continue to operate even though they are barely alive in economic terms.
- These firms generate little profit, carry heavy debt, and rely on external funding to survive.
- Such companies are often referred to as "zombie stocks."
- The term comes from the idea of a "zombie" - something that moves but lacks real life or strength.
- For investors, zombie stocks represent serious risks because they can collapse quickly when financial conditions tighten.
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