Where did the money actually go? Are these small startups or individuals that have gone bankrupt that totalled this amount ?
In: Economics
The losses you are asking about are “market losses”. That means that if you added up the difference in price of ALL stocks across all US stock exchanges from the day before (or the time frame mentioned) there would be a loss in value of 2.9 trillion dollars.
A few stocks may have gone up and those are counted in the math too but the total amount in aggregate has gone down.
These calculations have nothing to do with anyone buying or selling the various stocks on the days in question. That means that most investors haven’t actually lost money because they have not sold their shares. And maybe they bought the shares years ago when the stock was much lower, so they wouldn’t have lost money even if they did sell.
Consider that the markets have been performing well in the last couple of years and have increased in value by many more trillions of dollars than that scary sounding 2.9 trillion.
Latest Answers