[k1ePRlda]

Given your investment knowledge displayed in this thread, you're more likely to make money betting on the races.

[margoaroyo]

And if your investments sink so bad that you lose out, and you actually owe money, how do you pay it?

I do believe that Ameritrade is legally allowed to break your kneecaps in this instance.

[Gypejeva]

Oh dear.



This.

If I don't know about something and want to learn about something, I ask questions.

[toksenveste]

No, not with borrowed money.

Say I invest $100 with my own money, and the stocks go down far enough that I actually lose money - more than the $100 I started with.

My question was how do investors usually pay money back if they lose more money than they had put into their stocks/shares? Do they receive an e-mail bill/statement on what they would owe due to their loss, and then pay? Or would the money be automatically withdrawn from your checking account?

[HRCPda7R]

So the worst that could happen then is you go down to zero with the money you invested and you never would owe any money beyond what you had put in.

[ElegeExcest]

Alright. I thought that people could actually suffer worse though, and go into debt by losing more than what they had initially invested in.

[everlastinge]

So I wasn't completely off-base then.

[NKUDirectory]

Limited liability. Look it up.

[kristloken]

So the worst that could happen then is you go down to zero with the money you invested and you never would owe any money beyond what you had put in.

That's correct where limited company investment is concerned. Just stay clear of unlimited liability ventures, such as becoming a Lloyds "name".

[Valdoyes]

Thank you Solomwi, DanS, Bugs, and Kuci for your posts.

[aLZ9zKsO]

Yes, but can such 10-K filings be false or fraudalent? Thank you for your pointers, Japher.

[IoninnyHaro]

You're welcome. Now go admit how wrong you are in the other thread.

I don't know which other thread you're talking about.

[sStevenRitziI]

I'm not talking about needing to know everything as an insider trader, Japher. I was just saying if companies have gotten away with lying or distorting facts/data that they already release to the public.

[AngelinaLip]

All companies do that. The trick is learning when they are doing that. IMO, it's in the 10-K and in market trends. Why can Northwest have 3 mid-west hubs and none of the other airlines can? Well, they can't and we know it. Yet, when NW bought/merged with Delta that's what they got, yet they said their will be no hub closures... until now apparently. Note, for investor workforce reductions and consolidations are generally good things for the stock price (maybe not the value).

If you want to invest I would suggest you invest in value. IMO, this is what is meant by invest in what you know. If you invest in companies that value the same things you do you will be better able to spot the ones that are bringing more value at less cost. The other piece of the puzzle is knowing what value brings what cost. Should a company with $100M market cap have earnings equal to x times their shares? That's industry specific, and definitely something you should know.

[NerbuitW]

All companies do that. The trick is learning when they are doing that. IMO, it's in the 10-K and in market trends. Why can Northwest have 3 mid-west hubs and none of the other airlines can? Well, they can't and we know it. Yet, when NW bought/merged with Delta that's what they got, yet they said their will be no hub closures... until now apparently. Note, for investor workforce reductions and consolidations are generally good things for the stock price (maybe not the value).

If you want to invest I would suggest you invest in value. IMO, this is what is meant by invest in what you know. If you invest in companies that value the same things you do you will be better able to spot the ones that are bringing more value at less cost. The other piece of the puzzle is knowing what value brings what cost. Should a company with $100M market cap have earnings equal to x times their shares? That's industry specific, and definitely something you should know.

Sounds like good info - thanks.

[Mambattedge]

I would say that if you are investing with a limited bankroll, it rarely makes sense to invest in individual companies. As such, I wouldn't look at 10-Ks and the like, unless you're interested and curious about the financial situation of a company.

Personally, I look at my investments every day. But I could get by with glancing at them once every half year or so. By all means, it makes me no richer to look at them every day.

Okay. And for the record, I'm not going to start investing in anything until I have read and learned more about the basics of investing/financing. I think I'm going to start by borrowing a copy of Investing for Dummies from a library and see what other resources I can find.

[xanaxist]

I had someone once ask me how do you invest in options. I told them you don't, and more importantly YOU don't. Some people... invest in what you know, and HOW you know. Anyone who attempts to use "invest" as a pseudonym for "trade" is a nutter

[Pipindula]

MrFun, seriously, you're going to lose all your money you invest.