when the stock market drops in value where does all that money go like yesterday it lost one trillion anyone

It is just gone. The value of the stock fell, the stock did not go away only what someone is willing to pay for it was changed.

It does not go anywhere, it is basically coming out of the pockets of people and being ''eliminated''. So if l bought a stock for $100 and it is worth $90, the $10 was eliminated from the economy.

The money comes from the person who originally bought the stock at that price, if that is the answer you were looking for.

It evaporates. Investors are no longer willing to pay the prices they were before. Its similar to when you buy a new car and drive it off the lot. The value automatically decreases by about 30 percent.

it vanishes. when businesses do things right they create value out of thin air & the created value increases stock prices. when things do not go well they lose value & the lost value vanishes into thin air. it is not a zero sum game. when u read in the papers that there is a big selloff in the market please remind yourself that every stock that is sold is also bought & what is being traded r the cash flow projections in the future. so when the market goes down it paints a bleak consensus forecast for the future of the economy.

Hi j ob,
It does not disappear or go away. The money goes to those who bet the market would go down.
The simple answer is:
Investors can either buy or sell a stock.
The ones that buy, win if the market goes up. This known as a long position.
The one who sells, win if the market goes down. This known as a short position.
For every buyer there is a seller.
See link

Say you buy a new dvd for $20. 6 months later, you decide to sell it on ebay but a used copy is only going for $10. where did that other $10 go?

sometimes you might get lucky and buy a dvd for $20 only to find out the next day that they stopped making them. Now when you go to sell it on ebay, it is worth $30. Where did that $10 go?

The money that is in the stock market at any given time, is essentially ''paper money'' & represents the total market capitalization at a given time, which is the total combination of ALL of the shares currently trading on the market at their current market price. For example, if XYZ Stock issues 1,000,000 shares & they r trading at $1 each at the market close, & they r the only shares on the market at that time, then the total market capitalization is $1,000,000. If the stock opens at $1 per share but closes at 90 cents, then the market has lost $100,000. But the loss is only a ''paper loss'' for those who still own the shares.

It is only when the stocks r actually sold that the investor will have locked in either a loss in value or a profit. Note: When that ''paper loss'' really makes a difference is when the shares r held as collateral for a loan or when it cannot afford to be lost.

The one trillion dollars that was ''lost'' in the markets yesterday, represents a paper decline in the value of the shares over the previous trading day.

What that ''loss'' does not tell u is that lots of people made lots of money off of those ''losses''.

if there are short sellers, then ownership of the company is over 100%