Can market value become negative if a company's liabilities exceed its assets?

Market value itself cannot become negative; it is a measure of a company's equity as determined by the Stock Market. However, if a company's liabilities exceed its assets, it indicates negative equity, meaning the company has a negative net worth. In such cases, while the market value of the company's stock can drop significantly, it won't technically be negative. Investors may see this as a sign of financial distress, leading to a decline in share price.