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There’s a reason why people say investing in a company’s share stock is risky and that’s because you may never know when that company could face insolvency, and thereby company liquidation.
This is the risk point – as a shareholder, you stand to lose every penny of your investment if the company goes into liquidation.
However, that is not always the case; if you’ve invested in share stock and the company closes at a later date through a Members’ Voluntary Liquidation, i.e.
the company is solvent but winding up, shareholders will receive their dividend.