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Old October 5 2012, 04:36 AM   #56
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Re: Would the Neutral Zone have better without the 20th century charac

horatio83 wrote: View Post
By the way, good luck getting your deposits back when a bank goes bankrupt.
BillJ wrote: View Post
Here in America, we have a little something called the FDIC (Federal Deposit Insurance Corporation), which guarantees deposits up to $250,000 per depositor per bank. So if you have $10 million, spread between forty banks, and all forty banks fail, you are covered for all $10 million. You get every penny.

Your country has the same thing, right?

the guy also held shares and bonds and believes that they they are still worth something just like he believes that the company of his lawyer still exists.
Foreign & Colonial Investment Trust was founded in 1868 (144 years), it is a Investment management company, that means that they manage their investors portfolios. Some of the portfolios go back to the founding of the company (under a different name) and are multi-generational.

Any stocks or bonds you hold become worthless once the company ceases to exist.
Not always, if the company still possesses assets, the stockholders (first), and the bondholders (second), would be able to get part or all of their instrument's value.

just look at the stocks which a random stock market index contained in 1900 and which of these companies still exist after just one century.
Let's assume a well diversified portfolio, shall we. Further, let's assume that Ralph set up a financial trust with himself as the beneficiary.

From 1900 through 2011, average total return per year of the DJIA (Dow Jones Industrial Average) was approximately 9.4%. That's 4.8% in price appreciation and 4.6% in dividends. Below is the stock market from 1900 to the present.

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