#Stock Market Investments# The money that evaporates from the stock market doesn't really disappear, but evaporates from the market value of the stock. When the price of a stock falls, the value owned by the investor holding the stock decreases, as if the money has been evaporated. Specifically, the money evaporated in the stock market mainly goes to the following places:
1⃣️Listed companies: Listed companies are an important part of the stock market, raising funds through the issuance of shares and other means for expanding scale, developing new products, and developing markets. If the company is not doing well and the stock price falls, some of the evaporated money flows into the listed company.
2⃣️ New Investors: Investors are the main body of the stock market, and they invest by buying stocks. When the price of a stock falls, the market value of the shares held by the investors who entered earlier decreases, and the money that evaporates goes into the hands of the investors who enter later.
3⃣️ Securities Managers: Securities managers are intermediaries in the stock market who provide buying and selling services to investors and receive commissions from them. Therefore, when the stock price falls, some of the evaporated money also flows into the hands of securities managers.
4⃣️ State (banking, finance, etc.): The state obtains benefits from the stock market through taxation, regulation, and other means. Therefore, when the stock price falls, part of the evaporated money also flows into the state treasury.
In short, the money evaporated from the stock market has not really disappeared, but has been redistributed to stakeholders such as listed companies, investors, securities managers, and the state through various channels.
