- Joined
- Dec 21, 2018
- Messages
- 2,170
Yes, that can happen. If you are engaged in margin trades it can happen. If a company goes into bankruptcy proceedings even if they come out of it as basically a new company, the existing share holders are SOL. I give you General Motors as an example. If another company buys your company your shares will likely be traded for some # of shares of the buyer or sold under some conditions. All reasons why you should be diversified. Bonds are subject to early termination.Also if it is common stock they can sell it for you at a loss to you without your permission. Ask me how I know.
Historically the S&P has returned about 11%/year. But it is a bumpy ride. Many people find it hard to stay in when the markets take a big or prolonged dive. I have been told many time how they are losing $ and therefore are going to get out. That is so wrong. I'm not a trader. I'm an investor. I don't pay anyone to advise me, I prefer to make my own mistakes.