% Loseable on Share Purchase

[camel]

Am I correct in this.
Say you buy 100 Euro worth of shares. Then they dive in value. Is the maximum you can lose 100 Euro?
The reason I ask is that I heard a story recently of a guy who owned Worldcom or Enron shares or something and apparently they had negative value now. Is this possible?

 

[Brendan Burgess]

If you buy shares and they fall in value by 100%, you lose your entire investment but you don't have any further liabilities.

But if you borrow €100 to invest in shares and the shares become worthless, you still owe the €100k.

If you use financial instruments to buy shares, you could end up with a liability e.g. CFDs or selling a buy option.

 

[Godfather]

But if you borrow €100 to invest in shares and the shares become worthless, you still owe the €100k.

Owing 100K Euro for 100 Euro borrowed? Please call a solicitor as they are applying a wrong interest rate that is now allowed by law.