If you buy a share for example and the price of that share drops below the price do you lose everything?

Question

What im trying to say is, if the price of that actual share drops below the price you bought it can the price go up again?

people say that if the share price gos below the price u bought it for or below the limit you lose the share permanently

Answer 1

I believe you have misunderstood what they were trying to say.    Actually, share prices fluctuate on a daily basis.  It is not uncommon to buy a stock and have the price drop 10 points or even more.  Although on paper you have lost the amount that the shares have dropped--not everthing--if you do not sell the shares quite possibly they will rise again in price and might even rise to a price much more than you paid for the shares.  If the share price drops and you do sell the shares, you loose only the difference between what you paid and what you sold for.

There are only two instances where you could possibly loose everything.  One is if you were to buy on margin and the price drops and you get a margin call and meet that call and the price continues to drop, you could potentially loose everything.  The second is where the company goes bankrupt.  You would almost certainly loose everything in that case.

Answer 2

Yes, the price can go up again and no you don't lose the share unless you sell it at a loss which is probably what they did. You can always hang on to it and hope for the best, except in bankruptcy.

Answer 3

You only lose actual money if you sell the stock at that time.

If you buy a share of stock for $10 and it goes to $9, then you have a paper loss of $1. If the stock drops further to say, $5 and you sell it, you have an actual loss of $5. (Plus trading costs, which we'll ignore and we'll ignore taxes, too)

If you hold the stock when it is at $5 and it goes up to $15 down the road and you sell it, you have an actual gain of $5 even though the stock had dropped to $5 at one point while you owned it.

Answer 4

If the price of the share has gone down, it can go up again. You don't lose the share permanently. You get the value of the share (whatever it is worth at the time you sell it).

Answer 5

Nothing can fall forever and nothing can rise forever. Unless the company gets nailed for fraud after a crash/files bankruptcy, there's still a chance it'll rise back.

Answer 6

no, of course you still own the share!  it may not be worth as much as you paid for it, but it's still worth something.  Prices go up and down every day, so it's common for people to buy something for $50, have it drop to $49 the next day, and then go to $51 the day after that.  Just because something goes down certainly doesn't mean that it can't go back up again over time.

whoever told you that if the price drops you lose everything is an idiot.  never take that person's advice ever again.

Answer 7

No, you still own the share and you only lose money if you sell it at a loss.  You can still hold on to it and hope that the value rises.

The only way you lose everything is if the company goes bankrupt.