Q&A: Question about stock investment?
Hello,
I have been trying to find an answer to this rather simple question and have been unable to for over a month now. I?m 20 years old and looking to learn about the stock market now so i?m prepared when I have a little more money.
I?ll give an example of what my question is. Let?s say I invest $ 1,000.00 in gold. The the stock rises and let?s say I make $ 50 due to the stock?s gains. What happens if the stock plummets way down past where I bought it for $ 1,000.00? My question here is, would I just lose the $ 1,000.00 I invested in the stock or if it plummeted to say $ 10,000.00 worth below where I bought it, would I owe that money?
I really have no idea how all of this works but I am really eager to learn. Thank you for any information.
goldsenze.com Answer:
It can?t plummet below zero in terms of your investment. As a stockholder, you?re not liable for losses beyond your investment.
Think about it: If you buy something for $ 1,000 and its value drops to $ 500, you can sell it and get $ 500. If its value drops to zero, you?re still not out anything beyond that $ 1,000 you paid for it.
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