CNN.com reported 2.4 Trillion dollar loss last week (WE 10-11-08). Where did the money go? Lets look on a small scale. If l buy stock XX at 10 a share, and now it is at 5 a share, l have lost half. But where does that money go? If the stock market lost money across the board, it did not get diverted to another stock.
l am not trying to be funny or make a point, l wanna know. l am a smart guy, l just do not understand this.

Thanks

It is perceived wealth. The money does not exist until the shares are sold. If the market feels your house is worth $300K, it sells for $300K. Now suddenly, it may be perceived as $250K. It is not like you removed your kitchen and bathroom. :) See the hyperlink for more info and better explanation.

It is a paper loss. Not actual greenbacks. If you buy a car for $10,000 and later sell it for $6,000, where did the $4,000 go?