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I answer only public questions so all can benefit . I do NOT endorse any of the website ads that will bring you to my answers. I have started a blog called ..AS Tbaarr Sees It.. tThats the only site where I might benefit from any ads,see below for the address. I dont care about ratings as i am not here to make you buy a service from me... If you want my opinion just ask me... I was a askme.com expert who was consistantly in the top ten.... I have found my screename,on google,being used without my permission to promote scottrade and other garbage... Ask me here first before you try any service that is claiming my screename or using it as a link.... PLEASE let me know at my webpage or blog.... http://www.geocities.com/tbaarr/night_vision.html.. .. http://www.tbaarr.blogspot.com/ ....So i can go after them Thank you MY BROKER OF CHOICE IS CHARLES SCHWAB

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I retired in 1996 at the old age of 39 by using city based utilities and leap call options. on stocks like ibm and wal mart because you can control these stocks for 2 years for ten cents on the dollar.
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You are here:  Experts > Money > Online Brokerage/Banking > General Stock Investment Strategies > where does the money go ?

General Stock Investment Strategies - where does the money go ?


Expert: tbaarr - 10/28/2008

Question
If I buy shares of stock for $20 a share and I sell it at a later date for $12 a share.  Where or to whom has the $8 a share gone ?

Answer
To the person who was smart enough to sell to you at 20 a share

its like buying a laptop at wal mart for 600

and then next week

the same laptop is on sale for 500

at wal mart

the reason why the stock price or the laptop price dropped

is there was no buying demand at 20 bucks a share

but there was buying demand at 12

if 2 gas stations are next to each other

and the price at 1 is 5cents a gallon lower than at the other station

are you really gonna pay the higher price  

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