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

Nowhere, it never existed in the first place. It’s a complete fiction.

The only true value a stock ever has is the price at which it is transacted. If you buy it for $100, and sell it for $90, even if the price went up to $500, it was still only ever actually worth $90.

This is part of why valuing someone’s “wealth” based on the day’s stock prices is a pointless exercise.