Bankrupt Stock List – Understanding The Intricacies

May 25th, 2014 | By | Category: Debt

Sometimes it may seem that you will be able to lose just as well at the stock market as you can at the blackjack table. Ask anyone who has lost money in Enron how they felt after their stock went to zero. You can lose big on a stock but rarely do companies go bankrupt and the stock go to zero. In blackjack or craps, however, losing all you have is quite common.

In the old days, large companies rarely had scandals or went bankrupt. Today, scandal and bankruptcy appears to be common place and stock prices can fluctuate wildly. Today’s investors buy stock in seemingly great companies, like Ciitgroup or Washington Mutual, only to find themselves down 75% several months later.

The key to investing in the stock market is doing research. If you were to just take a listing of the stocks and throw darts at them, it would be most similar to gambling. However, the more you learn about how companies are valued and operate, the more ammunition you’ll have when picking stocks.

Europe’s debt crisis claimed another victim Monday morning, and this time the casualty was an American firm. MF Global Holdings filed for bankruptcy after an unsuccessful effort to find a buyer for the ailing firm. MF Global is headed by Jon Corzine, the former governor of New Jersey, who reportedly bet on the direction of European bonds — and lost.

When you buy a stock and it immediately goes down, it might sometimes feel like you’re gambling but that is mostly out of frustration. If you do your homework and pick your stocks carefully, you should be in a position to make money long term in the stock market. One thing is for sure: the stock market is a far better place to be ‘betting’ your money than the casinos.


Comments are closed.