Any insurance of stocks trading near face value?

#1
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
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?
 

comm4300

Well-Known Member
#3
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?
if the co. goes bankrupt, you will receive what ever is left [if any] after paying off debtors and preference share holders.
 
#4
if the co. goes bankrupt, you will receive what ever is left [if any] after paying off debtors and preference share holders.
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?
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?