
How does money disappear in a stock market crash
Where does money go when markets crash?
"Brexit crash wiped out a record $3 trillion," the headlines screamed after the UK voted to leave the EU. It is not uncommon to read such headlines in the financial media which usually comes following a stock market crash. But what exactly does it mean? Where was the $3 trillion to begin with and how can money just disappear into thin air? In a stock market collapse do people really lose their pension and invested money? Who gets the lost money? Certainly the lost money can't just vaporize can it?
A quick answer to the above question is "There was no $3 trillion to begin with."
Read on below to get a more clear understanding of how money works in the stock market and more importantly how money is said to disappear during a stock market crash