How to Trade Stocks Online
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i have a question about the Economic downturn, stock market crash affected worldwide, mainly the u.s. Well it seems to me that back 2 years ago or so. There was a stock market crash. Well the stock market was going fairly well. But then suddenly crash. Where did all the money go? i mean in a economic system there should be circulation the same amount of money right? So suddenly the markte crash and then we’re all poor now. WHERE THE MOENY GO? traded outside the country or what? like sure… how did our money or the market which is strictly base on money suddenly crash and then we’re poor. But then where the moeny go????
It didn’t go anywhere. When the stock market declines, you own just as many shares as you did before and you can sell them for whatever someone else is willing to pay. You didn’t have money before; you had stock. You still have it.
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January 6th, 2010 at 6:21 am
It didn’t go anywhere. When the stock market declines, you own just as many shares as you did before and you can sell them for whatever someone else is willing to pay. You didn’t have money before; you had stock. You still have it.
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January 6th, 2010 at 6:44 am
It didn’t go anywhere. When the stock market declines, you own just as many shares as you did before and you can sell them for whatever someone else is willing to pay.
References :
January 6th, 2010 at 7:28 am
Wealth is not equal money. Assume an economy which consists of one stock and 100 $ in cash. If you hold the stock that is worth 100 $ means that you could sell it to a buyer who is willing to give you 100 $ in cash. However, if the stock market drops and the stock is worth only 1 $, you are poorer by 99 $ because the buyer is willing to give you only 1 $ and he will keep the other 99 $ for himself, but the total cash is still the same, it is still 100 $.
In a stock market crash it is the value or the wealth that is destroyed, the money does not go anywhere and does not change as a result of the stock market crash.
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