Yes to all your questions with one qualification - you will actually pay between $105 and $110 for that share of stock and similarly, when you sell, in your scenarios you will get between $790 and $795; between $10 and $15; and between $290 and $295 - all depending upon what broker you use. You will always pay a commission on any sale or buy.

Of course, don't expect those types of gains...more likely if a share is at $100 it has been on the market for a while so to go from $100 to $800, you are looking at a number of years of appreciation. The only stocks that "skyrocket" are IPOs right out of the box when the big boys drop the stock to lock in gains and the little people buy the issue on the upswing(thus losing out on most of the IPO gains).

Also you need to keep in mind that capital gains tax must be paid anytime you sell something and make money. ... of any money we make from the sale of stocks, real estate and other capital assets.

I've decided to start investing in some stocks but I have a few questions.

1. If the initial price of 1 stock was $100 and it skyrockets from $100 to $875 per stock, is my profit $775 when I pull out that 1 stock I bought?

2. If the initial price of a stock was $100 and it dropped from $100 to $20per stock what happens to my money? Did I lose just lose $80? And if I pull out do I recive $20? Also, if I known the stock goes down but I decide to stay and then later the stock skyrockets from $20 per stock to $300, does that mean I made a $280 profit?

Sorry if it's actually called shares I don't know the business terminology that well.

Please read carefully and answer my questions + give any advice I appreciate it.