Any insurance of stocks trading near face value?

Discussion in 'Position Trading' started by NewStarS, May 5, 2016.

  1. NewStarS

    NewStarS Member

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    Hi,

    I don't know I constructed the question properly or not. But here I am asking the question with an example of UNITECH.

    This share is selling currently at Rs. 4.55. It has face value of Rs.2.00
    I was thinking to buy this share. But as UNITECH MD is in jail & lots negativity I am not sure about the investment. I don't have experience on stock trading long term. But unitech caught my eyes.

    So my question is if I buy this share, will I get any insurance if company get broke? What will be my minimum loss in this case? Will I get the face value back at least?

    Thanks in advance.
    Regards
     
  2. NewStarS

    NewStarS Member

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    May be the question should be what will happen if a company got broke or bankrupt , what will I receive in such case as common share holder.

    Will I receive the book value or face value?
     
  3. comm4300

    comm4300 Well-Known Member

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    Location:
    at vertical time
    if the co. goes bankrupt, you will receive what ever is left [if any] after paying off debtors and preference share holders.
     
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  4. NewStarS

    NewStarS Member

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    Then in such case, common share holder will receive very less I guess, last priority.
    How long this procedure takes to get something back from the bankrupt company?
     
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