A web user asks, What will happen to the DRIP shares and its value,

1. If the company offering DRIP(Dividend Reinvestment Plan) becomes Bankrupt. Will the fate of these share also be same as the fate of regular shares traded using the brokerage account?

2. Today if I purchase shares using DRIP for say $20 and down the line after couple of years the share value in the brokerage account goes down to $2, so that means I loose my money on the share purchased through DRIP also right?

Thanks !

Can you help them out? Post your advice!

Related Items:

1. How can a major corporation turn over stock shares to the state 32 years after purchase?
2. How Are Bonus And Fractional Shares Treated For Income Tax Purposes?
3. How To Account For Selling Shares In Private Company With ‘earn-out’ Payments?
4. When a broker lends an investor shares to short, does the original owner of the shares have to consen?
5. What paper work need to be completed when a partner wants to sell shares in a C corporation?