Old shares a bust

Finweek English Edition - - MARKETPLACE -

The new African Bank is slowly start­ing to get back to­gether. The ques­tion now is what the sus­pended old African Bank shares are go­ing to be worth. The an­swer re­mains ex­actly the same as in 2014 when it hit the wall – largely worth­less. Hold­ers of the de­funct African Bank shares do not get shares in the new African Bank; you still own the old bank that had more li­a­bil­i­ties than as­sets. The cu­ra­tors have been try­ing to sell what they can and if they man­age to raise more money than is owed, this will be paid out to share­hold­ers. This il­lus­trates the first rule of in­vest­ing: you get lots of po­ten­tial up­side as a share­holder, but if things go bust you get noth­ing.

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