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Let's use an example to illustrate. I own a certain Putnam Growth Fund. That growth fund is set up legally as it's own independent company separate from Putnam Holdings in order to protect it. That growth fund, as it's own company, gives parts of it's profits to Putnam Holdings for advertising, naming rights, research, guidance, management, etc. If Putnam Holdings went bankrupt, as a shareholder in the Putnam fund you have not lost anything except for the Putnam name, and it's talent that runs the fund. The mutual fund you own would still exist as a separate company and as a group you could hire a new manager or board to oversee the stocks. It has to be run this way because the Secruities act of 1940 says so.
Putnam is like a bowl that holds mutual fund fruit. If the bowl shatters, the fruit is still tasty and sweet (but maybe bruised a bit). It can be put in a new bowl or sit on the floor rotting.
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∙ 12y ago
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Does a lien hold if the company goes bankrupt?
unless it is written off by the court, it does. I would assume that it would be listed as debt by the party going bankrupt.
In concrete terms what would happen to Iceland if the Icelandic government goes bankrupt?
Governments can't go bankrupt. They just have to work their way out of their dept.
What would happen if you don't manage your finances properly?
You will get bankrupt and get into family problem or your wife will get divorce from you
Why would you want to buy a stock from the Virginia Company of London?
Hopefully to make a profit. Alas the company went bankrupt.
How would you use the word bankrupt in a sentence?
While some people went bankrupt in the 1890s mini depression, many businesses went bankrupt during the Great Depression.She felt emotionally bankrupt because of her drug addiction.
which mutual fund company would you recommend in canada?
TD Mutual Fund Company has high recommendations on their mutual fund activity. It is one of the largest investment companies in Canada. TD Mutual Fund has a long history of helping investors with a variety of investment portfolios.
Should you accept check from bankrupt company?
I would not, you might not get your money, or end up paying it back.
Is it best to use the information from an investment company when it comes to choosing mutual funds?
I would listen to your investment company's advice on where to put your money or which mutual funds to invest in. I would also consider family and friend's advice.
Is your brokerage account insured if your broker fails or goes bankrupt?
Not really insured, but you still own whatever stocks, bonds, or mutual funds you are invested in. I believe that custody of the certificate would pass on to another firm. It would be like if your insurance agent went broke, you would still have coverage from the parent company and your policy would be transfered to another agency.
What services does the company Liberty Mutual offer?
The service that the company Liberty Mutual offers is banking. If you would like to open an account with the bank or take out a loan, it is suggested that you visit the location nearest you.
What does limited liablitlty mean?
In business terms it means that the owners of the business (ie shareholders) are not liable for the businesses actions. Basically, if the business were to get in debt, and become bankrupt, it would not make the owners bankrupt, just the company. The owners and the company are separate in the eyes of the law.
What is the disadvantage of having a single stock?
if the company goes bankrupt or if the whole stock as a whole crashes then you would lose all your money or alot of it but if the single company is good in time you will get your money bank as long as the company didnt go bankrupt 1 stock company is very good if its a good company because its easy to manage it and learn about the ups and downs of it
