Imagine this.
You have €1000 in your pocket to buy some shares that will either lose you your €1000 or make you very rich.
You see a stock that is valued at €0.01 per share. You decide that if there is even a few cent increase you will make a very good return. You buy 100,000 shares for your €1000.
If you did no research on the company and purchased on the spur of the moment and If the issued number of shares for the company was only 196,000, theoritically you now have 51% of the company. If you were unaware of this what would the consequences be for you? If the company was in debt for millions of Euro, do you now end up assuming this debt?
COULD this happen and if so what would happen to such a foolish investor?
Who would tell you you now own the company?
You have €1000 in your pocket to buy some shares that will either lose you your €1000 or make you very rich.
You see a stock that is valued at €0.01 per share. You decide that if there is even a few cent increase you will make a very good return. You buy 100,000 shares for your €1000.
If you did no research on the company and purchased on the spur of the moment and If the issued number of shares for the company was only 196,000, theoritically you now have 51% of the company. If you were unaware of this what would the consequences be for you? If the company was in debt for millions of Euro, do you now end up assuming this debt?
COULD this happen and if so what would happen to such a foolish investor?
Who would tell you you now own the company?