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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience:  Run my own successful business/contract law practice.
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I am a stockholder in CIT group do I lose all of the money

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I am a stockholder in CIT group do I lose all of the money I invested in CIT now that they have taken bankruptcy?
Submitted: 7 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 7 years ago.
I am sorry to hear that you are in this position. Are you referring to your profit sharing plan or 401K?
Customer: replied 7 years ago.
No I do not have a 401K
Expert:  Dimitry K., Esq. replied 7 years ago.
Then what types of investments are you referring to that you made to CITI?
Customer: replied 7 years ago.
We bought stock shares in the amount of $1.65 for $165,000.00
Expert:  Dimitry K., Esq. replied 7 years ago.
Ahh, I see.

Typically a stock security is very risky, and past performance does not guarantee future results. That means that while a stock has the ability to increase in value, it also has the ability to drop (or even completely lose all value). Right now the stock is worth $0.913 . However if the company does go out of business, you will not be entitled to anything. Typically creditors get paid first, then debt and bond holders, then preferred stock, and if anything is left over, then the common stock shareholders. If worried about your investment, get your funds out even at a loss, if you are worried that the company will go out of business.

Sincerely,

Dimitry Alexander Kaplun, Esq.
NASD Series 6 Representative 1997-2001
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