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 same rate that it fell. So today on Fri., do I have $100 or something like $90?
What I don’t get is…
Is it like SITUATION A: which is like it’s always 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 today.
Or is it more like SITUATION B: I always have 100 pebbles but each pebble is worth more or less depending on the day, but I always have 100 pebbles and it all converts to cash ONLY when I decide to trade my pebble in for cash?
Or am I missing something and it’s better explained by some SITUATION C?
