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What if an investment goes bankrupt? |
what happens if a company that you've invested in in the stock market goes bankrupt? Your money goes down the tubes. You might recover some money if you own preferred stock. (after the bond holders rape the company) Their stock tanks to zero and your out of all your money. Remember 1929? Same . You lose. Some companies do emerge from bankruptcy. It depends on the situation. You could get some better answers if you disclosed the name of the company. If the company goes under (usually a more likely scenario), the equity (stock) holders are the last to get paid. Usually creditors and attorneys will whittle down the assets of a bankrupt company to nothing. He who steeps his wick must pay for the oil. |
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