where does the money go?

[makloda]

"It's not a question of enough, pal. It's a Zero Sum game - somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred - from one perception to another. Like magic."

 

[Compulsive]

Quote from makloda:

"It's not a question of enough, pal. It's a Zero Sum game - somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred - from one perception to another. Like magic."

Sounds like a winner!

 

[scriabinop23]

Quote from PAPA ROACH:

Stocks are definately not a zero-sum game. Some do go short and have made money, but for every stock long, there is not a short like a futures contract.

Not correct in the strictest sense. For every long, the company is outright short its shares. It collected the money at its offerings in exchange for the liability to its shareholder to split up profits / part of ownership with voting rights.

So when a stock goes through the roof, the company has foregone the gain in share price.

Foregone gains are a loss that result from a decision made. A transfer of wealth...

Stock market wealth is not strict zero sum, but a result of capital flows from other markets...

 

[btud]

Quote from chuckybrown70:

so people with little money love the fact the market is crashing???

The gain is proportional with the amount of cash you have. So, to answer your question, no. People with a lot of $$ gain the most, and those with little, the least. The rich still win in the end

Of course those people with a lot of money, and no stocks love the fact that the market is crashing. It creates oportunities not seen in decades.