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I Almost Bankrupted By Purchasing One Million Shares Priced at 0.1 Cents. Part-1: Story
A rare crazy financial debacle I experienced.
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First of all, I admit that I am a financial layman. I bought the first versions of the iPod, iPhone, iPad, and even Titanium Powerbook (the original version of the current MacBook Pro series), but I did not buy Apple shares. So naturally, I didn’t get rich. Fair enough. However, a spur-of-the-moment $1,000 publicly-traded stock buy brought me dangerously close to bankruptcy. Yes, merely $1000. By usual logic, the most loss was $1000, right? How come it almost bankrupted me?
The event was that I bought one million shares for $0.001. Yes, you read it right: a share is priced at 0.1 cents, properly listed on the ASX (Australian Share Exchange).
The company BrisConnections (BCS) builds roads and tunnels in Brisbane. The company is quite well known to Brisbane residents (seeing its name on roads), and brochures.
I watched the news about recording low share prices under a cent, and I started paying attention to it. One day, its share price plummeted to $0.001.
“BCS shares fell 59 per cent on the opening day…
