 How US Recession affect Indian Economy? |
| All you know that India sensex goes down by 6,000 in only 6 days. And it is because of US recession. Can you tell me how and in which sector it will badly affect in Indian Economy…... |
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 I am looking to invest in a stock market that is open opposite hours of the american markets? |
| hi everyone, I am a beginner investor who works nights, so unfortunately I sleep during the open hours of the NYSE. I have access to the internet at night when I work, and would like to look into ... |
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 What is bid and asked in purchasing stocks? |
| When buying stocks what is the difference between and bid and asked price?... |
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 Is there a name to my type of trading? |
| Just curious if there is a name to my type of trading. Each day about 15mins before the market closes I look at a new Mutual funds that have served me well over the past few years. If I find one ... |
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 I invest in shares and also have a part time job. My salary is well below taxable limits.? |
a) Will I be liable to pay income tax on my short term gains in shares even if my total income remains below taxable limits.
b) must I file IT returns.... |
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 Best stock pick website? |
Does anyone have any suggestions on which website to sign up to get the best stock pick advice?
There are so many to choose from. I try to pick stocks myself but I would like to try to get some ... |
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 What is a 401k and why is it always being talked about? |
I always hear about it, but I don't know what it is.
Please explain what a 401k is in english simple enough for a junior to understand.
Thanks.
*Please don't use terms like &... |
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 ChECK THIS OUT STOCK QUESTION?? |
| ok, im only 14 but ive got money invested in various companies such as gm, ford, aeropostle, and ge but i was wondering how i could get more involved in the stock market and learn more about it, such ... |
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 What do you think about my ROTH IRA and do you think I should put another Mutual Fund in there? |
| I am with Share Builder and have ARDVX in my Roth IRA. I am 26. Should I put another mutual fund in there or settle with this one?... |
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 What are Futures and where can I find its Chart? |
I would like to know the difference between regular stocks and futures?
I would also like to find a free up to the minute chart of the nasdaq 100 future for reference?
Who ... |
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 Can a person make money from day trading? |
| I'm just wondering if a person can make money from day trading either stocks or futures? If anyone does do this how much does he/she make and if its regular? I've got some money to blow so ... |
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momoftwins | Stupid question about the stock market? |
Okay I know diddly about the stock market, but have been reading the news about it dropping. Now it's down 7 trillion dollars. My question is, where is this money going? Who's hands is it falling into?
Please excuse my ignorance. |
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Kathryn
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It's really not going anywhere. Publicly traded companies (companies whose stock is traded on the stock exchange) can be valued by multiplying the numbers of shares outstanding by the stock price. So on paper, these companies are now worth less than they were. It also affects ratios that companies publish (like their price/earnings ratio).
People who have lost a lot in their 401(k)'s (myself included) didn't really lose anything unless they have to sell their investments now. We still have the same number of shares of stock/mutual funds, they are just worth less on paper. Presumably, when we retire in 10, 20, or 30 years, the investments will be worth much more than they are right now (and we're buying new shares at a discount now).
Think of it like your house. Let's say you bought a house for $200,000, and it is now worth $150,000. You didn't really lose $50,000 unless you have to sell the house. If you hold onto the house, the $50,000 is just lost on paper. |
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SmokeyD
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It isn't money, it's speculated value. Investors buy ownership (stocks) in companies they like and think will grow. These stocks are estimates of the per-share value of the company. When the company is thought to be on the road to higher growth and better profits, the value of those shares increases. When investors are pessimistic about the company and think it will do poorly, the value drops.
The stock market works the same way on a larger scale. Most investors think the market will continue to do poorly so the perceived value of the overall market declines. The money doesn't go anywhere because it isn't actually real money until you sell the stock. When you sell the stock, you exchange it to another buyer for cash. The amount you receive is the estimated value of the stock. |
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chocolatebabycakes
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The stock market is falling so fast due to banks not being able to lend out money. Many of the top banks gave out mortgages to people that are now foreclosing so those loans are not being paid back and that leaves the banks in a deficit. Banks are one of the nation’s main source of income so if banks can't lend money, no money is being generated or spent and this causes the stock market to slow drastically. No one is buying anything because no one can get credit to buy homes, cars or loans so this in turn slows our economy. It's really messed up! |
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knight of the Kings Kingdom
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Market values are dropping
Valuations are evaporating
it is not going into anybody's hands
because the value no longer exists
Think of deflation
If a candy bar at the corner store is marked down from 60 cents
to 50 cents
Where did the missing dime go
It went nowhere
Because there was no dime to begin with |
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Stevey X
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It's a loss of confidence in the market. People are scared and when they are scared there are more sellers than buyers so the price of things go down. Just the opposite is when people are confident that the market will go up. There are more buyers than sellers so the price goes up. |
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Trade
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money is not lost or gained it is simply transfered from one person to another... |
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robe
 |
There are no stupid questions with investments - the more information you have, the better decisions you make...
The money goes two places
1. It goes to the opposite side of the trade. Most people are familiar with "going long" (buying a stock) but not as many are aware of shorting, or buying puts - both of which profit as stocks go down in value.
2. It can go "into thin air" as well, due to devaluation. Let's say you go to sleep at night with 100 shares of XYZ valued at 100 per share. But overnight, the "widget" they make is shown to be defective, and is not only on the evening news, but is downgraded by key stock analysts before the market opens the next morning. At the open of the market, the stock is valued at 88 dollars. Some of that was likely countered by shorts and puts, so there was some profit on the opposite side of the trade. The rest of the positive value is just "gone".
It is important to remember though, no loss is realized until there is a sale. Only the "book value" is impacted until the sale.
If you do your research and find out the widget was unfairly devalued, and there really is no material problem with the product, you may start buying more while the stock is depressed, and when the rest of the market discovers the truth, realize a nice gain. This would have been a nice "entry point" for a new informed buyer.
Where most people get into trouble is holding on to dogs too long. Some people watched Enron lose virtually 100% of its value, and still didn't consider selling. If you don't cut your losses, you'll not have any resources to pick your next winner.
Most experts recommend cutting losses on strong stocks at 7 - 8% below their buy point.
Hope you've found this helpful
The final piece is knowing when to get in and get out. |
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