Who takes your money when your stocks progress down? It can't be the people who's company increased because it isn't approaching if one stock goes down a point, another go up, so who gets the money?
Answers: It is no different than anything else you buy. If you income $10 because you think it is going to be worth $15, consequently you sell contained by a year at $5, someone else just bought at $5 because they reckon it will be worth more later.
Just similar to buying a car, house, anything else. You buy it for a price, and you market it later for another.
When the souk goes down, NO ONE take you money.
In order for money to alteration hands surrounded by the market some one in fact has to buy and someone have to sell.
Other than the buy/sell, money does not silver hands, as a result there is no money movement
If you buy, you take-home pay the money to the seller,
if you flog you receive money from the buyer,
If you sell at a lower price than you salaried, you lost money,
but the buyer didn't make any money
Although I pretty much agree beside the previous answers, I don't think they explained the situation remarkably well.
Some types of investments are particular a "zero sum" investments because for every dollar one personality makes another creature loses a dollar. Poker games are "zero sum" because every dollar one character makes is a dollar someone else lost. Similarly, futures and option are zero sum investments because for every long position at hand is a short position.
Stocks are not zero sum investments. If the price of the stock go up, all the stock holders kind money. If the price of the stock goes down, adjectives the stock holders lose money. When the price of a stock changes, the merit of the company (as determined by market participants) change.
If you own shares of stock, you own an asset. Similarly, if you own an oil ably you own an asset. If the value of an asset you own go up, you make money; if the meaning of an asset you own goes down, you lose money. No one else make or loses money because you are the sole owner of that asset. It does not matter if the asset is a stock or an grease well. The money you made or lost does not walk to anyone else. Wealth is created or destroyed, not transfered from one to another.
I hope this makes the answer clearer.
I am afraid W.S C. is exactly correct.
There are two types of losses(and gains) within the market.
One is the stock change in price from purchase price. The difference if you do not go is an unrealized gain(or loss). Your net worth have changed. Think about the Bearn Stearns executives whose stock holding go from $30 to $5 before the buy-out. Those who have borrowed based on the helpfulness of their holdings were surrounded by dire straits indeed. These changes are normally referred to paper gains(or losses) Paper cuts can be mortal.
The second of course is the difference surrounded by value between purchase and mart.. You can turn $10000 into $100,000 or vice versa.
Perhaps an analogy would be buying a sports car. Most vehicle including sports cars do depreciate contained by value. However sometimes you buy a classic that you can put on the market to a collector for more than you paid for it. The resourceful vendor have made some money but is indifferent financially to what happens to the good point after that. So it is with stock seller.
I
your lost is someone else's gain remember that.
if you sell when the flea market is down, someone bought the stock you sold and they found a bargain.
and when they open market is good and you want to get hold of back contained by guess who is selling you the stock? the person who took the wrangle from you.
always be on the right side of the cycle. for example, today be a good light of day to BUY, not SELL
the person you bought the stock from. They sold it to you takign a risk they might lose out on profit. But what they sold you be worth what they sold it to you for when they sold it. Each transaction have two party.
ones gain is balanced by others loss.
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Answers: It is no different than anything else you buy. If you income $10 because you think it is going to be worth $15, consequently you sell contained by a year at $5, someone else just bought at $5 because they reckon it will be worth more later.
Just similar to buying a car, house, anything else. You buy it for a price, and you market it later for another.
How can a 15 year dated beside a ridge explanation invest?
When the souk goes down, NO ONE take you money.
In order for money to alteration hands surrounded by the market some one in fact has to buy and someone have to sell.
Other than the buy/sell, money does not silver hands, as a result there is no money movement
If you buy, you take-home pay the money to the seller,
if you flog you receive money from the buyer,
If you sell at a lower price than you salaried, you lost money,
but the buyer didn't make any money
Question give or take a few Forex open market contained by India?
Although I pretty much agree beside the previous answers, I don't think they explained the situation remarkably well.
Some types of investments are particular a "zero sum" investments because for every dollar one personality makes another creature loses a dollar. Poker games are "zero sum" because every dollar one character makes is a dollar someone else lost. Similarly, futures and option are zero sum investments because for every long position at hand is a short position.
Stocks are not zero sum investments. If the price of the stock go up, all the stock holders kind money. If the price of the stock goes down, adjectives the stock holders lose money. When the price of a stock changes, the merit of the company (as determined by market participants) change.
If you own shares of stock, you own an asset. Similarly, if you own an oil ably you own an asset. If the value of an asset you own go up, you make money; if the meaning of an asset you own goes down, you lose money. No one else make or loses money because you are the sole owner of that asset. It does not matter if the asset is a stock or an grease well. The money you made or lost does not walk to anyone else. Wealth is created or destroyed, not transfered from one to another.
I hope this makes the answer clearer.
I am afraid W.S C. is exactly correct.
There are two types of losses(and gains) within the market.
One is the stock change in price from purchase price. The difference if you do not go is an unrealized gain(or loss). Your net worth have changed. Think about the Bearn Stearns executives whose stock holding go from $30 to $5 before the buy-out. Those who have borrowed based on the helpfulness of their holdings were surrounded by dire straits indeed. These changes are normally referred to paper gains(or losses) Paper cuts can be mortal.
The second of course is the difference surrounded by value between purchase and mart.. You can turn $10000 into $100,000 or vice versa.
Perhaps an analogy would be buying a sports car. Most vehicle including sports cars do depreciate contained by value. However sometimes you buy a classic that you can put on the market to a collector for more than you paid for it. The resourceful vendor have made some money but is indifferent financially to what happens to the good point after that. So it is with stock seller.
I
I want to invest $25,000 change?
your lost is someone else's gain remember that.
if you sell when the flea market is down, someone bought the stock you sold and they found a bargain.
and when they open market is good and you want to get hold of back contained by guess who is selling you the stock? the person who took the wrangle from you.
always be on the right side of the cycle. for example, today be a good light of day to BUY, not SELL
Name top ten indian companies whose shares will you purchase for your children?
the person you bought the stock from. They sold it to you takign a risk they might lose out on profit. But what they sold you be worth what they sold it to you for when they sold it. Each transaction have two party.
ones gain is balanced by others loss.
Resolved Questions: