The Investment Newbie

Itā€™s not possible for the value to be negative: that would mean you owe them money, which doesnā€™t make sense.

See the Debenhams - DEB.L thread for what can happen when a company goes bankrupt. But regardless of the specifics, if the company never makes money again (eg. because it ceases to exist), then your investment becomes more or less worthless because:

  • If you still had the ability to sell your shares, no one would want to buy them at any price
  • The company can no longer give you dividends
  • If the companyā€™s assets are sold off, you still might not get any of that money because sale proceeds will cover loan debt first, and shareholders last
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