answersLogoWhite

0


Best Answer

When the Stock Market goes down, the unit price of the shares held by you will be lesser, may be even that of the purchase price, resulting in monetary loss.Those having experience in stock market, hold them and wait for the opportune moment so that their shares may fetch a decent price.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why was it a problem if the stock market went down?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

When stock prices are up what does that mean?

It means the value of a company's stock has gone up in dollar(s) and vice versa. A point is usually equal to a dollar in most cases. So, if a company's stock went down by 5 points, it means the value of the company's stock went down by 5 dollar, which reflects the company's value in an open market and that's not a good thing.


What If a bond selling at a premium?

One or more of the following market conditions may explain why a bond is selling at a premium (to face value): * Interest rates went down (causing value to go up) * The credit rating for the company issuing the stock went up * The company issuing the bonds has offered to buy outstanding debt at a premium * If convertible bond (to stock), the underlying stock went above a critical value making the bond more valuable when converted


What is the bailout of banks?

If you are asking about the Sept 2008 bank bailout, here is the answer. Bush administration wants to pay more than the price a pool of mortgages is worth on the open market. This is in esssence a gift to bankers. Think of a mutual fund or stock you have bought and lost money on the investment. The banks and stock brokers made bad investments on sub-prime mortgages, and now want the taxpayers to give them free money to bail them out. If that happens, why doesn't the government give you a check to bail you out over that stock you bought that went down in price?


If you lost money on a financial institution stock can you claim it as a loss?

Yes, if you sold the stock for less than your basis or if there was an event that caused your stock to become worthless during the year. Note that this does not apply if the stock was in a tax-sheltered account such as an IRA or a 401k. If a bank went out of business causing the stock to become worthless, you can claim it as a loss. If the value of the stock went from $200 a share to $.02 a share, it is not yet worthless -- no deduction until you sell it.


Did Publix stock go down or up on June 30 2009?

We don't find out until July 31st if the price went up or down from 15.55. I am hoping it went up because I bought a LOT of shares this time since it was so low hoping that it would go up atleast a dollar or something. So hang in there we will know on the 31st.

Related questions

What is mean by dips in stock market?

A dip in the stock market means that the overall price of stocks went down in value compared to the previous day.


What companies went under due to the stock market crash 1929?

In 1929 a terrible thing happened. A stock market crash occurred, leaving millions of consumers and stock brokers in debt. At&T went down as well as the Dow Jones.


On what day did the stock markets crash?

The stock market crashed on October 29th. The employment rate went way down and marked disaster for America.


When stock prices are up what does that mean?

It means the value of a company's stock has gone up in dollar(s) and vice versa. A point is usually equal to a dollar in most cases. So, if a company's stock went down by 5 points, it means the value of the company's stock went down by 5 dollar, which reflects the company's value in an open market and that's not a good thing.


He price of the stock went down 4.25 on Monday and then it went down 2.75 on Tuesday what was the overall change in the price for those two days?

the price of a stock went down $ 4.25 on monday and then down $2.75 on tuesday. what was the overall change in price for the two days?


When the stock market crashed in October of 1929 what happen soon after?

Banks went out of business.


Does the US treasury own GM stock?

No. In fact GM went down and the government had to pull out the stock before they went farther into dept.


How did the stock market crash affect people who owned stocks.?

People lost money and went into debt.


The period after the stock market crash when many people went from prosperity to poverty is called?

the great depression


The period after the stock market crash, when many people went from prosperity to poverty is called ________.?

great depression


Why mutual fund lower performance in 2008?

Mutual funds performed poorly in the year 2008 because of the stock market crash and the economic crisis. Since the price of almost all stocks went down heavily, the NAV of the mutual funds went down and hence their performance was poor.


What do I do if I swallowed a cockroach?

As long as it went to your stomach, it is OK. If it went down your lungs, then you have a problem.