so where did the money go? Investors lost money - who has it?
Quoting: Alexander person A buys stock at 10dollars, person B buys stock from person A at 9dollars, the 10dollars are with the bank (company accoungt) who issued the stock, 9dollars go to person A, the bank gets 0.1dollars transacion costs, the 10dollars stay with the bank.
if this is too hard for you to understand think of it as a car.
You buy a car for 10k dollar.
The bank gets the 10k dollar(company account)
you later sell the car for 7kdollars
you lose 3k in lost value, the bank uses your 10k to invest in stuff.
in other words ... your money is with the bank ...
in fact all your money is with the bank and all you get is a statement and some limited cash withdrawal limit
