Where does the money go that is lost in the stock market?

Whomever

Whomever

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Or in finiancial markets as well. Where does it go? Just evaporate or who winds up with it?
 
The "wealth" was based on calculations of stock PRICES at a given point in time. But if it is not converted to actual cash at any time, it is never real.
 
AssHatZombie said:
The "wealth" was based on calculations of stock PRICES at a given point in time. But if it is not converted to actual cash at any time, it is never real.
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Yes like trading baseball cards I know.

But if you pay $100/Share and then it drops to $10/share someone has the money you paid.

Money does not just evaporate.

contributions to 401K's and such went somewhere.

Who has the money?

Or are you saying we have lost no real money, just potential gains?

some have lost real money and someone else has it.
 
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Whomever said:
Yes like trading baseball cards I know.

But if you pay $100/Share and then it drops to $10/share someone has the money you paid.

Money does not just evaporate.

contributions to 401K's and such went somewhere.

Who has the money?

Or are you saying we have lost no real money, just potential gains?

some have lost real money and someone else has it.
Click to expand...

Yes. If you cannot get back your original investment even, you have lost real money.

The problem is the illusions people see on their statements with highly inflated values, these give the impression of having lost more.
 
Whomever said:
Yes like trading baseball cards I know.

But if you pay $100/Share and then it drops to $10/share someone has the money you paid.

Money does not just evaporate.

contributions to 401K's and such went somewhere.

Who has the money?

Or are you saying we have lost no real money, just potential gains?

some have lost real money and someone else has it.
Click to expand...
The corporation has the money you paid for your shares. What they are doing with it depends on the circumstances of the corporation, though most times when a stock suddenly and drastically deflates, it is due to unsupported debt of the corporation, in which case the money is being used to support/pay down that debt.

But try to remember, you still have the shares. You only lose (permanently) if you sell while the price is still deflated. Just as you only gain permanently if you sell while the price is higher than when you bought. Meanwhile, you own a piece of a corporation (property), which is what you bought with your $100/share. Buy a new car and it's value immediately drops significantly, then continues to drop over the years. But if you hang on to it long enough, it will become a classic and it's value will rise again, sometimes in excess of what was paid. The same is true of any personal or real property. The only difference is stocks fluctuate more and more rapidly than any other type of property.
 
AssHatZombie said:
Yes. If you cannot get back your original investment even, you have lost real money.

The problem is the illusions people see on their statements with highly inflated values, these give the impression of having lost more.
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Correct we have not lost nearly as much real money as most think.
However some money has moved around, like to China and to other peoples pockets.
 
Whomever said:
Correct we have not lost nearly as much real money as most think.
However some money has moved around, like to China and to other peoples pockets.
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Yes. The banks cashed in big time by having these fake gains made up with REAL FRESH MONEY. cool scam.
 
Whomever said:
Yes like trading baseball cards I know.

But if you pay $100/Share and then it drops to $10/share someone has the money you paid.

Money does not just evaporate.

contributions to 401K's and such went somewhere.

Who has the money?

Or are you saying we have lost no real money, just potential gains?

some have lost real money and someone else has it.
Click to expand...

But the inverse is true also.
If you bought a card for $10.00 and then it was reported to be worth $100.00and you don't sell it, but hang onto it, and then at a later date you find out that it's still only worth $10.00,; you never really lost any money.
 
USFREEDOM911 said:
But the inverse is true also.
If you bought a card for $10.00 and then it was reported to be worth $100.00and you don't sell it, but hang onto it, and then at a later date you find out that it's still only worth $10.00,; you never really lost any money.
Click to expand...

Correct. Unless you consider that if you had it in a more secure environment it would have gained a few %.
So again lost a potential gain.
 
So why are we in a finiancial mess? And why is the stock market is the indicator of when it is over?
 
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