Hi,
I’m new on trading world + trading 212.
Before start to invest, I want to have a full scope of the risks therefore my question:
If I invest in shares of one company using trading 212, and that company in the future becomes insolvent, as a shareholder on trading 212 am I liable for any debt of that company?
Thank you
No so if you invested £100 in a stock the most you could ever lose is £100 if you did nothing and essentially each share was worth 0p.
With any stock you’ll want to keep tabs, so in reality you would probably sell at some point rather than let it become totally worthless if the company showed very strong signs it was about to go bust.
“Common shareholders are paid out last in the event of bankruptcy after debtholders and preferred shareholders .”
I think they were just making sure they aren’t liable for debt which they are not. The worst case is 0.
But yeah in the case it all goes to shit you’ll be at the end of queue it terms of getting anything back.