What is Belly Up?

In the finance world, a company goes belly up when it declares bankruptcy or goes out of business.

How Does Belly Up Work?

Let’s assume Company XYZ’s stock falls from $10 per share to 50 cents per share due to a series of internal scandals and product failures. The company files for bankruptcy a week later. In this situation, we would say that Company XYZ went belly up.

Why Does Belly Up Matter?

The financial world seems to have its own language sometimes. In this case, the slang term evolved from the fact that when creatures die, they tend to fall on their backs, with their bellies facing up.