Where did all the money earned from the stock decline go?

Because the stock market is originally a barometer of the economy, with the different economic cycles, the conversion of bulls and bears is also alternating. There is a bubble in the bull market, and the bear market will be underestimated. There is no loss for investors, but the market value has changed with this cycle.

Stocks are commodities quantified by money. It is basically no different from ordinary commodities, and the value of this commodity is related to the market's valuation of it. The so-called valuation is based on the expected securities price, but it is actually a virtual economy. Stocks go up, shareholders only have floating profits, stocks go down, and shareholders only have floating losses. This rise and fall is due to expected changes, that is, changes in valuation.

Extended data

From a microscopic point of view, if retail investor A decides to withdraw from this market and sell his chips, resulting in actual losses, while B takes over, and then B makes money as the stock price rises, that is to say, A's losses are just earned by B. ..

In fact, the second one here is the zero-sum game in the stock market. In fact, the stock market is not a zero-sum game, but a negative-sum game, which is correct, because as long as investors trade, there will be brokerage commission income, stamp duty and other costs. Although there are not many transactions at a time, there will still be many after a long time. This is the fundamental reason why there are always more people who lose money than those who make money.

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