The basis of my question is this:
If I had $100 in stocks on Mon., on Wed I had $60, and say it climbed back up by the exact same rate that it fell. So these days on Fri., do I have $100 or some thing like $90?
What I don’t get is…
Is it like Situation A: which is like it’s usually the cash value of my stocks that counts, based on the monetary value of my stocks, or based on like if I had 100 pebbles then I only have 60 pebbles, so going back up 40% would only get me to 90 pebbles by these days.
Or is it much more like Situation B: I usually have 100 pebbles but each pebble is worth much more or less depending on the day, but I usually have 100 pebbles and it all converts to cash ONLY when I decide to trade my pebble in for cash?
Or am I missing some thing and it’s much better explained by some Situation C?
