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What happens to the money if a share of stock sells lower than what you paid for it where does the money go?
Wiki User
∙ 15y ago
Basically the money doesn't go anywhere. When you buy a stock you will get a confirmation statement from your broker, showing the amount you paid for the stock + the commission. When you sell the stock you will also get a confirmation statement from your broker, showing the amount you sold the stock for - the commission. You compare the "Net Amount" from those two statements to see if you made a profit or had a loss. Either way, that must be reported to the IRS. The "Value" of your stock can go up or go down or stay the same. Once you buy a stock the amount you paid is only meaningfull to you and the IRS, as the only other time the IRS cares about the "Value" of your stock is when you sell it. The money is gone once you buy the stock - you can think of it as it went to whomever sold it.
Wiki User
∙ 15y ago
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