Hubris252
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NO! When you buy stock you are only liable for your original investment. If the stock becomes worthless you are only out your original investment. If the company is found to be knowingly poisoning an area with its waste product and fined billions of dollars, guess what, you're still only on the line for your original investment.
Don's example of owing taxes on the dividends isn't valid because the taxes are levied on dividend payments which are above and beyond your initial investment. You would still be up whatever portion of the dividend payment you kept after taxes even if the stock tanked to $0 |
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Flying High
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No. The stock market works only with the money that you put in to it. You can't go negative what you have. If not a lot of people would be broke! |
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Adam J
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You can't lose more money than you've invested in a stock under normal circumstances. Assuming you:
1) Are buying the stock long (ie just buying the stock) and
2) Are not borrowing money from your broker (margin) in order to buy the stock.
There are ways to lose more than 100% on your investment such as shorting a stock or selling naked put or call options. Generally if you borrow money from your broker to invest your broker will make you sell off holdings to avoid the possibility of the broker taking a loss (which can result in a 100% loss for you even if the stock you've bought has not fallen 100%.) |
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DJ
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The stock will rise and fall over time. So as your investment goes beyond the original amount then yes you can, however you cannot lose more than what is in your account, once you reach $0 you are done, you no longer have an interest in that stock. |
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Trev
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If you invest in a standart stock purchase the only way to lose more than you invested is if they crashed to $0.
Your loss would be $1000 plus commission on purchase |
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ndkaki
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IF you don't know the answer to that I advise you stay away from the stock market.
I'll give you a hint, Joey pwn is wrong! |
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donfletcheryh
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No, however yes.
If a company pays you a reinvested dividend so that you ow tax on it, then the price of the share tanks to zero, you will have lost both original investment plus tax.
The tax benefit of capital loss treatment is after the event, but it does soften the blow by cancelling out capital gains of other investments,
The dividend tax may have been paid for years before the company fails, and it will have been paid from other sources of income. |
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sandevyl
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Depends how you take it.
Logically you cannot loose more than 1K as thats the amount you have invested.
But if the share value goes up, and your 1K becomes 2K, and then again the share value falls drastically then yes you have now lost 2K.
But again your actual loss would be 1K as thats the amount you have invested. |
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Center
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I think the only way you can lose more than you invest is if there are fees involved. If you go through a stock broker, you could pay a "transaction fee" for each time you buy or sell any given stock. Then if the stock goes down to zero, theoretically, you could be stuck for all your money plus the fee. Let's hope you make wiser choices than that when buying stockLOL |
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BigBen
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yes. if you buy stock on margin, and can't pay the interest. so you'll be catching up the interest payment every now and then.
Use these tips to avoid such occasion:
Good Stock Pick for Unlimited Profits Framework
http://www.stock-investment-made-easy.com/good-stock-pick.html
How to Find Good Stocks That Will Survive 2008 Market Crash
http://www.stock-investment-made-easy.com/how-to-find-good-stocks-that-can-survive-2008-market-crash.html
How to Pick Good Stocks That Can Make You Rich in The Long Run
http://ezinearticles.com/?How-to-Pick-Good-Stocks-That-Can-Make-You-Rich-in-The-Long-Run&id=864890 |
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northnode3g
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Luckily the lowest you can go is to zero (that is unless you invest with margins). |
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PS
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i think stock market is a place not for you. |
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hooterville
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no |
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Kemo
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Yes, for example if bought at $1 a share and it dropped to 1 cent a share, then thats all you'd get for that share. |
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smooth_stalin
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Depends on if the stock goes down. If the value drops below the amount you put in then your out. But that could be the time to buy more shares if it is low, then when it goes back up you'll have your cash back and you can sell the knew shares. Wallstreet is a trip to Vegas. |
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