Where did the money actually go? Are these small startups or individuals that have gone bankrupt that totalled this amount ?
In: Economics
The term “money” has many definitions. You took your cash and invested it in a stock or fund or Bond or something hoping to make more money. Now let’s say that thing you purchased goes up and you have “made” $50. Well, you only “make” that it if you are able to sell it at the higher price and it goes back into your cash account again (you’ll be paying taxes on it, but that’s a different story to tell). Now, if that thing drops by $50, you freak out, and try to cash it out, if you are able to do so, that sold price (minus fees & commissions) will be deposited back into your cash account.
Now let’s say that thing drops $50 and you don’t freak out, you just let your investment be. There’s no actual loss to you, it was just numbers going up and down. It’s not an actual win or lose until you cash out. All the rest are just numbers.
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