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What happens to all of the money...?
...which gets 'lost' when the stock market crashes or goes down? I know it's registered as a loss / losses
in peoples' accounts & on the records, but what happens to all of the actual money that people have
deposited / invested into the market? Thanx for any & all answers, comments, thoughts & opinions!!!
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Sorry that I asked this question twice, but I just wanted to get different perspectives from people in different categories, and this is my favorite category.
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2 Answers
- Anonymous6 years agoFavorite Answer
It goes to the company. Let's say you buy a share of Apple for $300. You give Apple 300 dollars and you now own a piece of their company.
Ok now if the value of the company increases you can sell your share to someone else for more than 300 and make money. Also if the company loses value you may be forced to sell it for less than 300.
You can also think of it like buying a house. You can buy a house for $200k and pay the previous owner. If the housing market crashes you may only be able to sell it for 100k.
It's like trading (that's why they call it trading stock). The money doesn't dissapear. Some people just get good trades, some get bad trades
