23 votes
Accepted

What happens if you own a stock and the firm becomes liable about something

Will you, as a stock owner be liable to pay something out of your pocket too? Not directly - equity owners are not personally liable for the debts of the company. But if the company pays a large ...
D Stanley's user avatar
  • 135k
16 votes

What happens if you own a stock and the firm becomes liable about something

In a Limited Liability Company (LLC) the liability of the stock owners is generally limited to the value of their stock. Even if the company is liable for damages the worst that can happen is that it ...
user3819867's user avatar
5 votes

What happens if you own a stock and the firm becomes liable about something

That's one of the goals for having stock in a company. Your liability for any losses the company incurs is limited to the value of the stock you have invested in the company. The most you can lose is ...
Plover's user avatar
  • 51
4 votes
Accepted

Strategy and science behind determining which stocks to buy and invest in?

There are three ways for a stock owner to get cash out of that ownership - when they sell, when dividends are paid, or when the company is bought (or liquidated) What if no one is buying a stock but ...
D Stanley's user avatar
  • 135k
4 votes

selling on settlement date

Yes you can sell your stock at any time after your purchase. In a cash account in the USA, settlement is currently two days (T+2). You can buy another stock with unsettled funds but you cannot ...
Bob Baerker's user avatar
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3 votes

What happens if you own a stock and the firm becomes liable about something

No, you will not be personally liable. That is the whole point of a corporation. With a corporation, the company itself is treated as its own entity that will have its own accounts and holdings, and ...
Seth R's user avatar
  • 173
1 vote
Accepted

Is there a paperwork difference between buying US based vs foreign based stock which trades in nyse?

There's no difference. Some dividends may be foreign sourced and have foreign taxes paid on them, you'll see this on 1099-DIV box 7 (and 8). That can happen with many different dividend-producing ...
littleadv's user avatar
  • 174k
1 vote

What happens if you own a stock and the firm becomes liable about something

The most common forms of a company that has (common) stock comes with liabiliy limited to the capital of the shares for the shareholder, as explained in user3819867's answer. However, according to ...
cbeleites unhappy with SX's user avatar
1 vote

selling on settlement date

Yes you can sell it immediately after, you just might not be able to use the proceeds for something else until the new trade settles. Settlement only affects your ability to use cash from ...
D Stanley's user avatar
  • 135k
1 vote

Wash sale rule on sale of a stock for a loss

The USA, UK and other countries have a wash sale rule. It is triggered by the acquisition of substantially identical replacement shares (stock or option) within 30 days before or after realizing a ...
Bob Baerker's user avatar
  • 76.4k

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