financing_loans
|
No thats futures.
When you purchase a stock you bought it for what you paid. You own that share in the company.
Say you bought 1 stock for 100 bucks. It goes up to 150 bucks you can sell it and make 150 bucks or 50 dollars profit. Lets say the same stock goes down to 50 dollars. You can sell it for 50 dollars, so you lost 50 dollars.
Your gains and/or losses are only on paper until you sell it. When you sell your stock you will either make money or lose money from your original investment. In the meantime it just tells you what your stock is worth if you do sell it.
Good luck |
|
Goldenrain
 |
No, you lose money. When the value of your stocks go down so does your investment. A hypothetical, simple example: let's say you have 10 shares of a stock worth $25 a share which means you have $250. Then the stock value goes down to a value of $20 a share and you still only have the 10 shares. You now only have $200 dollars worth. That's how it works. |
|
Matt W
|
No, you do not.
Think of it this way. You are playing jeopardy. You can gain money so your in the + or you can go into the -. Just because your in the - doesn't mean you pay it just means it is now harder to make money!
Hope that made since, If you have any more questions just ask.
Matt
PS Best answer appreciated |
|
Icy Gazpacho
 |
No, HOwever.....
There is a loan called a margin loan.. that you can get to purchase stocks with. You have $100 for example, but buy $300 worth of stock... borrowing $200. The lender uses the stock as security for the $200 you have borrowed.
Say the stock goes up 20% then your stock is worth $360... you sell it.. pay back the $200 and you now have $160 of your own money (less brokerage, interest and tax).. so you have made a 60% profit! Very nice.....
Say the stock goes down by 20% then your stock is worth $240... you obviously dont want to sell and realise a 60% loss of your capital investment... but the Margin lender is uneasy.. they are uncomfortable now with the level of security they hold.. so that do a "Margin Call" .. they ask you to top up the value of the stock with more cash or htey will sell some of your shares! In those circumstances you still own the shares and you might have to pay more money to hold them! |
|
rhsaunders
 |
If you own them outright, no. If you have borrowed against them in a margin account, possibly. |
|
yusdz
 |
NO. |
|
larry j
|
no, you own the stock it just means the value of it goes down and you can then sell it for less. the only way you would owe money is if you bought the stock on margin which means you borrowed money form a broker to pay for the stock. the loan is then repaid when you sell it. if the stock goes down you would have to pay money. if it goes up you get money. |
|
yowuzup
|
you dont pay money, you just lose money that it was worth before it dropped |
|
melte63m
|
No never. Worst case senerio the stock get dropped because it falls below a dollar for to long. In that case many times you just loss your money. |
|
Just Jess!
|
no when you have stocks it's their value that changes when the price goes up or down. that's why you don't officially gain or lose money in the stock market until you sell the stocks. then you must pay taxes on what you made from that sale. you lose money when you sell stocks for less than what you bought them for but you don't have to pay anything. |
|
STONER
|
No, you can only lose what you put in to start with. |
|
Bobyns
|
No. |
|
TwoDots
 |
No. A stock purchase is typically a long term holding, unless you are a daytrader.
If the price is lower on the market than the time you originally bought it, then it would end up costing you money (plus your broker fees/transaction fees). On the other hand, if it goes up you make money and pay tax on the earnings. |
|
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
