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money to recapitalise the new bank. But those funds will go toward issuing new shares in the government’s name, not to compensate private shareholders.

“There is no chance for shareholders to get anything. All the banks’ NAVs per share are negative. Very soon, shareholders will see that they have nothing left against their investment,” said Saiful Islam, president of the DSE Brokers Association.

He added that while depositors are protected under an insurance scheme, shareholders are not. “This will be a hard lesson for investors. They must invest cautiously. When a company’s ability to continue operating is in doubt, it means there is a real possibility of shareholders losing everything.”

Islam, however, pointed out that many small investors appear undeterred. Even as liquidation and mergers threaten their holdings, they continue buying shares of long-troubled companies. On Thursday, for instance, shares of Familytex BD — a loss-making firm for at least seven years — rose by 6 percent to become the third-highest gainer on the Dhaka Stock Exchange (DSE).

“This is not an isolated case,” he noted. “It has become common for investors to chase non-performing companies.”

The stock market is a place where investors are expected to put money after evaluating a company’s performance. If a company fails to perform, shareholders will have to bear the loss. If the company performs well, shareholders will benefit. “So, naturally, shareholders are expected to be responsible.”