The stock fell, where did the money go?

When stocks fell, money was made away by investors who had risen in the previous period, and some money was made away by the government and securities companies.

Introduction:

The stock market generally refers to stock transactions in the secondary market. Investors hope that after buying the stocks, the price will rise and then sell them for arbitrage. Few people consider listed companies. The profitability of the company, and the profitability of the company is where the value of the stock lies.

Stock trading is actually not a "zero-sum game", but a "negative-sum game." If the stock market is closed, there will be less and less funds for stock trading. Why? Because the government and securities companies are involved in the stock market, whether it is a bull market or a bear market, the government and securities companies have to collect various taxes and fees from investors.

The Shanghai and Shenzhen stock markets are larger every day, and the cost of stock trading is roughly 0.4 of the transaction amount. In other words, investors have to give hundreds of millions or billions of yuan to the government and securities companies every day. The large trading volume of stocks means that the majority of investors lose money by trading in stocks.