For example, what happens to my money when I use shares of eg. Netflix buy the stock stands at 350 and then drops to 200 of course this is bad for me but where does the money disappear who benefits then EToro or Netflix?
Generally you should first know what a stock is.
The share itself is nothing more than a kind of promissory note. You buy a certain part of the company with the stock. The more shares one has, the more one then owns this company (AG). Anyone who has 51% of the shares determines this company, because at shareholder meetings, every shareholder has a certain voting right on decisions that the company makes. If e.g. It is decided that the urinals in Pink could be placed the one who has the 51% vote against and choose the color freely.
Of course, the value of a stock drops and rises accordingly. It can also happen that a stock is taken off the market because you In the last 24,48 or 72 hours more than 80% has lost value (market), then the shareholders would go blank. It can also happen that a stock becomes worthless, that would be the worst thing that can happen to a stock owner. You also lose your fortune as you have invested in it. It may also be otherwise that if the company is doing well and is making the corresponding profit in its area then the owners of the shares will get a dividend distributed. Thus, a certain amount of profit is branched off and divided into the amount of shares.
The more shares you have the higher the amount you get. Another phenomenon in stocks may happen that a split is completed. The company thus sets the value of a share. When it reaches the value, practically the number of shares is doubled. Regardless of the price you bought before. Conversely, this can also happen when a stock reaches a value as a minimum so that the stocks are merged, so in practice the half is halved. I used to own stocks of Dell shares between 1998 and 2003. During that time, Dell has 7 times split your shares. The value of the shares was then set at $ 50. At that time, I bought the shares at DM prices (200 units) in the corresponding exchange rate. At that time, I still borrowed money from a colleague who no longer lives today. I paid him back the money in 2004 with interest and at that time I bought precious metals from the profits of the Dell shares (gold, silver, platinum, rhodium). This is located outside the EU. So that the German policy can't access it.
Mass is not class. When you read the beginning, you do not need to go on. Shares are not promissory notes (debt capital) but equity and your comments on price developments of stocks to zero, you can save confidently.
The money disappears "nowhere".
The whole thing has to do with supply and demand.
If you buy a stock for the price of 350 euro, then you do that because
1. You think 350 euro is a reasonable price for the stock
2. Because everyone else thinks, 350 euro is a reasonable price for the stock.
We'll take your example and I assume that you've bought 1 share now.
Due to a variety of events but now people (analysts) think that now a price of 200 € would be reasonable for the stock.
Now you have a stock that is worth 150 euro less, but as long as you do not sell it, you have not "realized" the loss. That means, you still have no real loss in euro.
Now you hold the stock for a year and it rises to the price of 450 euro. Now you are thinking that this is a reasonable price to sell. Now you realize your profit of 100 euro. Now you have a real profit, the "unrealized loss" amounting to 150 euro from a year earlier does not matter anymore.
I hope it has now become clearer that with price changes, nobody has more or less directly.
The AG has to do with the price development only to the extent that it should do good business with the core business.
So that can be sales proceeds that flow to the company, thereby the profit should rise, with good margin.
Since the shareholder is involved, he has a share in the profit and his share therefore increases.
It's even easier to explain to a mining company that encounters a gold mine.
Stock price increases need an impetus from the outside, so that they are fundamentally underlaid. It deserves the one who is a shareholder during this event or overall positive development.
The AG itself only receives the proceeds when the shares first go public (issue).
