Buy high, sell low

When you buy a coin or a stock or a car for a lot of money, and then sell it later for a lot less money, where did the money go?

Scenario: Buy a stock at $15/share
sell later for $5/share
where did the $10 go?

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wow, i've never seen this question before

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Jow Forums - Business & Finance

Car: The money went to the dealership, and the person buying the car from you for less.

$15,000 to dealership, $7,000 in savings to person buying car from you. If you sold the car a second time for $15,000, you would have acquired the extra $8000 from the second buyer.

If somone is shorting your specific stock, they get the money. If no one is shorting a stock and it goes down, money LITERALLY disappears.

No shorts of AMZN, AMZN goes down, money is eliminated from the system by a 1 turning into a 0.

>not sure if sarcastic or not
Maybe I'm stupid, but that $10 didn't vanish. Who got it?

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I mean, is it like this?
I buy a stock from Bill for $15.
Later, I sell it back to Bill for $5
Bill has the remaining $10 in his pocket.

Now the financial system is a lot more complex than that, so where exactly does that $10 wind up?

I know I'm stupid, and I'm trying to correct the situation. Doing it on a Malaysian Tuk-Tuk enthusiast board isn't wasting anyone's time.

The fucking person you gave the money to jesus christ

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Bruv, what are you confused about? Let's say all you have is $20. You buy a stock from bill for $15.
>your accounts
$5, +stock
>Bill's accounts
+$15

Price drops and you panic sell back to bill for $5

>your accounts
$10
>Bills accounts
$10, stock

what stock is good to buy?

For you, buy a highly diversified ETF, e.g. MSCI World. A single stock depends on luck if you aren't smart.

The money did vanish, the price dispersed over time and lost value mostly due to a lack of liquidity/demand.
Take for example when a stock market crashes, its not shorts overpowering the market but just all the longs liquidating at lower and lower prices because there's no liquidity, nobody profited completely from the collapse and the shorts actually helped against a total collapse.

Its ok for randumb anons to ask where the money went

If you are a politician, however, you risk waking up dead

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Enron, MCI, Bear-Sterns dream team

what are you talking about? you didnt answer the question... did the money go into the stock and come out? why do you have more at the end although you actually did a bad trade by panicking and fomong?

this is where it goes brainlet

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Money can vanish in these kinds of scenarios...

Well, not physically "vanish" but it gets put back into the system, whether that's a companies operating costs or stock buyback or whatever it may be, and then if that stock takes a massive hit (usually due to some unexpected catastrophe) the price falls and that "vanished money" is essentially in the hands of ancillaries attached to the organization, so contractors, suppliers, utility providers, etc. or in the case of stock buyback it'll be in the hands of whoever was lucky enough to sell before the crash.

All the money goes to who you bought the stock from. The theoretical value of the stock decreased, nothing vanished. People will just buy the stock from you for less.

lol why do that.. i bought skycoin at 6$ gonna sell at 14 at the EOY

You sell me a car for $100.
I sell it for $5.
Where are the $95?

In YOUR pocket.
The fact that I got $5 afterwards does not concern you. It is the same with stocks.

Money isnt something magical, money is simply what you pay or sell something for.

The question is pretty easy to answer with a little scenario.

You have bought a potato for 5€ now you sell it to someone else for 1€, where did the money go?

The money is still in circulation. The value of the asset dropped is all.

dont let the money go to waste or be won by other players :D sell at a high, claim your winnings be happy :D so, buy SKY first of all

all the fucking crypto dropped. some shitcoins will die, others will grow and stabilize, sky is one of them, mark my words

It's just digital numbers with no fixed supply. They an be added ad deleted at will, with no real work.

Plus, it's the most efficient way to tax people and manipulate the economical money flow. That's it.