Anonymous
Anonymous asked in Business & FinanceInvesting · 9 years ago

simple questions about stock market..?

ok, so i am a college freshman and have never invested in stock market. that's why i have begun to learn slowly.

1. so let's say, if you buy 10 stocks at $10 a share, and the stock drops to $5 a share, do i now have 10 stocks worth 50 bucks? What if stock price drops below $0.00, is the company bankrupt? do i still hold stocks of that company?

2. if you buy a stock at $5.00 closing price of today, the opening price tomorrow would be same? why or why not? (if no, does that mean you can lose $ overnight even when the market is closed?)

thnx!

3 Answers

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  • 9 years ago
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    For question 2, the opening price on the day after you buy a stock could "gap up" or "gap down" by significant amounts, due to overnight news or developments about the company or industry.

    So there is no assurance the price will be the same the next day. Look at RIM and NFLX, for instance.

  • 9 years ago

    For the first question yes an no. He price cannot go below 0.00 , but it can go down from the time that you bought it. Also a company going bankrupt is not based upon the stock price it is based on the businesses orating costs. But yes if a company does go bankrupt you do still own stock. But for the second there is something called after hours trading. This is a confusing concept, but a particular stock could fluctuate in value after 4 pm until a certain time later. After that time arrives after hours trading has ended and whatever price the stock is at is what it'll be at market open.

  • 9 years ago

    1. -Yes. To everything You Asked. #2. Yes- also. Each Trading Day begins where the Previous One- leaves off. :)

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