| Pay cash for 100 shares of a $50 stock | $5,000 |
| Stock falls to $30 | -$2,000 |
| Total value when shares are sold | $3,000 |
| Subtract initial cash investment | -$5,000 |
| Loss | $2,000 |
| Pay cash for 100 shares of a $50 stock | $5,000 |
| Stock falls to $30 | -$2,000 |
| Total value when shares are sold | $3,000 |
| Subtract initial cash investment | -$5,000 |
| Loss | $2,000 |