Why Bankruptcy is a greater issue for SMSFs

Bankruptcy

Bankruptcy is never a pleasant prospect for anyone, and much less for those who have a Self-Managed Superannuation Fund. The reality, however, is that people who have invested into an SMSF have more complex issues when dealing with bankruptcy than others. Here are the top 3 reasons why:

1. You become disqualified

This is the main reason that so many people who invest into their SMSF have problems. What happens is either they become bankrupt or another member of the fund becomes bankrupt and then …

Stock Warrants

Stock Warrants

A stock warrant is the right to buy shares of the company at a defined price. Stock warrant is similar to stock option. The difference is that an option is offered by the market exchange while warranty is offered by the company owning the stock. The other difference is the time of existence. While options are valid mostly no more than one year (in rare cases for two years) than warrants are valid to ten years and even longer.

Companies offer warrants in order …

Introduction to Stocks

investor sells stock

Having a part of shares of the company does not involve you in management of the company. It usually has executives responsible for business management, strategy and all other company activity. As a result the owner of stock is not liable for the company. All the liability is on the side of executives. Shareholder has only claim to assets and dividends.visit her latest blog post for more related information.

Very often company executives are people having the biggest part of shares of the business corporation. …