What Happens to ASX Stocks that go Bankrupt? | A lesson from Virgin Australia

What happens to shareholders when their ASX stocks go bankrupt? Today we look at companies that go into voluntary administration, liquidation or receivership and explain the difference between them, and what it means for the shareholders. We take a look at Virgin Australia to see what happened to them after years of compounding losses and how to claim your capital loss on tax.
The last thing to do for shareholders is to remember who the directors were and absolutely avoid them if they ever get involved in another company.
This stresses the importance of doing the proper research and fundamentals before you invest in any new business. Always ask yourself, how well protected is my investment? How future proof is it? And most importantly, how profitable is the company. This is something that I try to cover in all my videos so make sure to hit that like button to help out the channel.
Disclaimer
The information on this video is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
I am not sponsored by any listed companies and all information provided is purely from my opinions of the stocks available at the time of uploading this video.

[@deathman020]

Great video. Can you also do a video on why company split shares. Recently happened to PPH asx and the price dropped from $6.8 to $1.7 after the split. Cheers

[@trexzar87]

Thanks! Good idea for a future video, normally companies split to allow people with less funds to be able to invest, since we can only buy a whole share here in Australia. It looks like Pushpay did it to what they called "enhance liquidity" which just means to allow smaller parcels of ownership to be traded around, hope that helps!

[@neddiego2570]

To increase liquidity.

[@DGMcreative]

Thanks for another great video, It would be good if you could do a similar video with... What happens to your shares if the company enters into a JV or completely gets taken over. lots of interesting scenarios that may help some of your viewers.

[@trexzar87]

Thanks David, great idea, JVs do vary depending on the agreements but I could definitely do a video on the history of big take overs on the ASX

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