what does it mean by $2.9 trillion wiped away due to losses in Stock market. Where did it go?

Question

Where did the money actually go? Are these small startups or individuals that have gone bankrupt that totalled this amount ?

In: Economics

Answer 1

Imagine your home being worth 1 million. Now an ugly financial crash comes and now your house is worth 700k. Uve lost 300k (on paper). Thats basically the same about stock market. U never actually lost the money unless u make the transaction (realize the loss). Stocks move up and down a lot in short term. One day u might “lose” 3%,but another day “win” 10%.