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Stock Market Question


Shamasii

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So I have around 500k invested into various stocks on neopets and I was wondering if they can actually "crash" and go bankrupt and you loose all of your neopoints? I am just wondering so I can figure out if it is "safe" or not to invest a pretty large amount into one stock or not...

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Yes, technically a stock can go bankrupt and you will loose those np but it doesn't happen all that often, I'd even go as far as to say it rarely happens, but as long as you are investing your shares in different companies, it should never really be a problem because your net gain will definitely be able to cover your loss if one does go bankrupt, this is assuming that you have a considerable amount invested in various things.

 

But again, ignoring my ramblings, yes, it is possible.

 

Edit: On second thought about this question, if you meant is it possible for all the stocks to crash like in real life I suppose that is possible but not probable since they try to make it a stable market.

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I don't know the real answer to this but this is my experience with the stock: I have lots of stock (basically, everything that has ever drop to 15 in the last 2 years.) None of them ever backrupt. Grant, some of them are always has low price (lower than 30) but I just keep it there in the hope that it might go up. The stock is really profitable. I have 3.4million invest there.

 

PS I don't think that 100k is too much. Is that a holding value or market value? Currently, my largest amount in one company is 9000 shares, that is 135k paid and 333k market value. :D

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The 100k is market value :P Haha, everything I have right now is under 18np per...I only have a couple right now and I am just building up my stuff right now, I plan to have around 2 million invested at some point, but with the 1000 shares per day thing it will probably take a while...

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it's happened a couple of times i believe, but i think it's very statistically unlikely to occur. out of all the people i know, none of us have ever had our stocks go bankrupt...the prices have gone very very low maybe, but i don't recall them ever crashing. as someone said above, as long as you spread out your stocks (which it seems like you already have), you should be fine. =)

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I've had some of my stocks go bankrupt before, although, it was many years ago. If you look at the "Competitors" section under certain stocks, you can see some are at 0 -- I think those are the bankrupted ones. They don't seem to go back into business either if they do go bankrupt. I ended up dumping the stock that I had because it had been 0 forever (and when I say forever, I mean 5+ years).

 

It's not a normal occurrence, but it has happened.

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Yes stock do go bankrupt. It hasn't happened for a few year now but when they fall to 0 it means that that stock is bankrupt and will never rise again. It is very unlike to happen since TNT introduced the rule about not being able to buy stocks under 15 np. I have over 4.5 mil invested and if i lost 1 of my stock it wouldn't really matter as i have my portfolio spread out over about 20 different stock

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