Yes, if a company is facing loses that share price will go down and so you will suffer loses based on how many shares you won in the company.
Feb 26 2012 08:57 AM
Recent example is Everonn. Check out their stock price here - http://www.google.com/finance?q=NSE%3AEVERONN
The company posted loss in the last quarter and its CEO was arrested. This lead to a crash in the stock price.
But loses are not the only reason a companys stock price crashes. Other reasons like competition, economy, legal etc also contribute.