Every time a stock sells, the money goes from the person buying the stock to the person selling it, as you would expect. When stock prices go down, the lost money doesn't "go" anywhere, because it wasn't actually money--it was stock. A lower price means simply that people aren't willing to pay as much for it now as they were in the past.
Here's an example to illustrate it: imagine you paid lots of money for some hot collector's item. Later, the item falls out of favor, and people won't pay as much for it now as you did. Your lost money didn't go anywhere; it's just that the value of the item went down. The same thing can happen to stocks.
2007-08-14 07:59:38
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answer #1
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answered by rainfingers 4
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The stock market is held up by private and company investments...All the money is either owned privately or by business/consortium's..it is nothing but global gambling on a grand scale..if you think of it that way it is easier to understand.....some lose and some win,,the idea is to win
2007-08-14 15:00:30
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answer #2
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answered by McCanns are guilty 7
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