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The "Stock Market" refers to the sum of all the shares of stock that are publicly owned. The "value" of a share of stock is simply an estimate of what someone would pay you for that share if you chose to sell it. If you own a share and continue to own that share, what you own is the stock. In that case, you don't own money - any amount of money - you just own the stock. So when "the stock market" "loses value" no real money is lost - except from stock owners who choose to sell at low prices. The value lost is the amount of money that WOULD be lost by the current stock owners if all the shares were sold.
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How can you lose money in the stock market?
In a bear market your stock value goes Ka-flop.
What does it mean by money loses value isn't money money?
Money can lose value by inflation or gain value through deflation.
Where did the money go when the stock market crashed in 1929?
The money that was tied up in the Stock Market was the paper value of the stocks that were bought and sold. There was no regulation of the Stock Exchange at the time of the Great Depression so stocks and companies listed on the Exchange were often over-valued by the owners of the companies. As people tended to buy one stock over another, the value of that stock increased (on paper) while the value of the little purchased stock declined (on paper). When stock brokers started to call in the money they were owed by investors who had purchased stocks on time (called margin buying), the investors would try and sell their stocks in order to pay off the broker. Since many of the other investors were doing the same thing, the value of the stock declined and people found it next to impossible to sell their stock. When the Stock Market collapsed, there was no real money at the Stock Market Exchange. The money was in the value of the stock of the company being listed (bought and sold) on the Exchange. When the bottom fell out of the Market, the people who had invested money in the Market and could not sell it, never got it back. So the simple answer is that the money just dissappeared!! Those stocks that survived the crash, and those investors who held on to the stocks they owned, may have been able to sell those stocks later on as the Stock Exchange was allowed to open under regulation by the government. If I company did not survive the crash and was never listed on the Exchange again, those investors never got any money back.
Where did the money go when the market crashed in 1929?
The money that was tied up in the Stock Market was the paper value of the stocks that were bought and sold. There was no regulation of the Stock Exchange at the time of the Great Depression so stocks and companies listed on the Exchange were often over-valued by the owners of the companies. As people tended to buy one stock over another, the value of that stock increased (on paper) while the value of the little purchased stock declined (on paper). When stock brokers started to call in the money they were owed by investors who had purchased stocks on time (called margin buying), the investors would try and sell their stocks in order to pay off the broker. Since many of the other investors were doing the same thing, the value of the stock declined and people found it next to impossible to sell their stock. When the Stock Market collapsed, there was no real money at the Stock Market Exchange. The money was in the value of the stock of the company being listed (bought and sold) on the Exchange. When the bottom fell out of the Market, the people who had invested money in the Market and could not sell it, never got it back. So the simple answer is that the money just dissappeared!! Those stocks that survived the crash, and those investors who held on to the stocks they owned, may have been able to sell those stocks later on as the Stock Exchange was allowed to open under regulation by the government. If I company did not survive the crash and was never listed on the Exchange again, those investors never got any money back.
How market capitalization affects stock exchange?
Market cap of a stock can affect a stock exchange by increasing the size of an index. Appreciating value of a stock's shares outstanding increasing not only increase the value of market cap, but contributes to the size of the index.
The amount stock is worth on a secondary exchange is know as?
Market Price or Market Value is the price of one stock Market capitalization is the value of all the stocks listed in that particular exchange.
Is Book value of common stock the same as the market value?
No. To get book value per share, you would divide book value by shares outstanding. Market value is whatever the current rate is on the stock exchange.
How do you get started in the stock market?
1. identify some money that you can afford to lose. 2. identify a company that dominates their industry whose stock has been selling for below its value.
Why did many banks fail after the stockmarket crashed?
on October 29, 1929, $10- $15 billion loss in value and stocks fell drastically. This is when the Stock Market crashed Why did many banks fail after the stock market crashed? because they invested in the stock markets, so when it crashed they lost all their money
How did inflation affected the Roman Empire?
inflation happens when money loses its value and it affected the Roman Empire.
What is waightage of stocks?
In terms of stock market, a stock weightage or a market value weighted index describes an index whose elements are values according to the fair market value of their outstanding shares.
What is the value of whole foods market stock?
I know the value of the whole foods market stock is probably a good bit. This is a pretty good market stck however. This is the one i would go to if i was you.
