If stocks where bought in cash how could the drop ,the cash is still their?

if stocks where bought with real cash say $5,000 and drop to $1,000 ,overnite where did the cash go , someone must have the other $4,000 i can see if it was just on paper or hearsay it could just disappear

If stocks where bought in cash how could the drop ,the cash is still their?no fax loan

The person who held that stock was paid $5,000. But the fellow who bought it lost $4,000 overnite. So to answer your question, you could say that the original holder has his money.

If stocks where bought in cash how could the drop ,the cash is still their? loan

When you buy stock, for say, $5,000, the money is gone. Just like if you bought a television or something. Now instead of the money, you have stock in a company (or you bought a television, in the example). This new thing you own, the stock, has a value. The value when you bought it was $5,000. You hope it becomes more valuable. But the value can drop. If consumer sentiment drops, or if the company performs badly compared to it%26#039;s peers, the value can drop.|||Replace stock certificate with %26quot;baseball card%26quot;. Say you pay $5,000 for a rare baseball card that, for whatever reason, falls out of favor soon afterwards. Now, the best you can get for it is $1,000. The $4,000 didn%26#039;t disappear, but the item purchased decreased in value by $4,000. The same happens in reverse. If you bought stock for $5,000 and then it increases in value to $7,000, the $2,000 didn%26#039;t appear out of thin air. It is simply the increase in value of the item purchased.|||Something is only worth what someone is willing to pay for it. If you were willing to give me 5k for 100 shares of my stock, I traded your cash for my shares of stock. Now lets say you wanted to sell it at a point in the future. What is it worth? Only what you can get someone else to give you for it, no more and no less. Just like anything else you buy. The stock market is just like EBay, only just for stocks. What is a collectible teacup worth or anything else you wish to sell on there. Sometimes, depending on the market at the time or how that certain company is doing when you go to sell it, someone is willing to give you more than what you paid for it and sometimes less than what you paid for it.|||You are confused.

If you have $5,000.00 in your account and you BUY 100 shares of Coca-Cola for $50.00 you have to PAY SOMEONE for those shares with real cash.

Your broker finds you someone with 100 shares and they pay the cash (They also charge a small commision) and your money is no longer your money.

Your money is now in John Doe%26#039;s account.

He used to have 100 shares of Coca-Cola but he now has 0

You used to have 0 shares of Coca-Cola but you now have 100

The next day the stocks are drop to $1,000 but they could recover in the future.

Only if decide to SELL you actually lose money.

Of course, in real life this is impossible.

You can control your losses and you could set an automatic order to sell at $4,000.00 (20% Maximum Loss) to limit your losses at $1,000.00

Those losses of millions of dollars overnight are very popular in Hollywood Films but it does not happen in real life.|||On howstuffworks.com, the question was posed %26quot;how can the total value of all the stocks in every company added together equal more money than there is cash available?%26quot;

Let%26#039;s suppose that there are 100 shares of something, and the price is varying as stocks do. On Monday, one share costs $10 and there are $1,000 in existence.

Now let%26#039;s say someone decided to sell it for $5. The total value of those stocks, now becomes $500, bc 5*100=500. The other five hundred dollars didn%26#039;t go anywhere, they%26#039;re in the pockets of those ppl who sold for ten dollars, but bc the last price of the day was $5, that%26#039;s what every share is now valued at.

If one person sells a share of stock for more than it%26#039;s been going for, then the price of all the shares goes up to meet it, even if there aren%26#039;t enough dollars to buy them all. This means not everyone can sell at once, but they%26#039;re all assigned that higher value. It works the other way, too, when prices go down. There may be more than enough dollars to pay for every share, but bc no one is paying more than that lower price, the value of the share stays down.