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wildame12 | Can someone explain what happens if I purchase a single share in a co. and the stock goes down? |
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Tony C
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u loose money |
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ElOsoBravo
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You lose money on the value of your share according to the extent of the decline. |
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TG Special
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Then your share will be worth less money than when you bought it, simple as that.
Say you buy one share at $10.00. The company reports bad earnings, and the CEO is arrested for corruption. The next day the stock tumbles and closes at $5.00, lets say. So your share is worth 50% less than it was when you bought it.
Now you may hang on to it. Lets say the CEO's crime was just on him and not the company, and the company lands a big gvt contract. Then the share goes back up to $10.00. you are even again. Then later in the year it goes up to $15.00, then you made 50% of your money. Less any brokerage fees of course! |
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math_prof
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The value of the share you purchased decreases. You do not loose any money unless you sell it for less than it cost you to buy it. By the way, don't forget the cost of commissions as well. Similarly you don't make any money ,when the stock price increases, unless you sell it. |
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Shyguy
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I read everyone's response and they are all right with their answer to this very good question. |
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jamn23
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Buying a share is like buying a little piece of a company. The share price gets determined by the stock market (which is a bunch of crazy people who try to decide how much a company is worth.) This means that the share price constantly changes. So, let's say you buy 1 share of a company for $10 dollars and the next day the share price drops to $8 dollars. You just lost $2 dollars. Simple as that. If you had bought 2 shares for $10 each (for a total of $20 dollars) and the share price dropped to $8 dollars, you would have lost $4 dollars. Get it? |
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cappy
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yes, the share you own is worth less than when you bought it.
When the stock price goes up your share is worth more. |
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Frank Castle
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Nothing. |
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fame
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i find u guys crazy. does it mean i cnt make any profits in buyin shares.1 share means what?can u purchase 1 share @ Ksh500,000? How/What gains i get here?duo i gt bac my 5hndred or i loose?,.oops! am sory i know nothing thats y i ask such questins. |
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