Economy

1608 readers

9 users here now

Lemmy Community for economy, business, politics, stocks, bonds, product releases, IPOs, advice, news, investment, videos, predictions, government, money, politics, debate, current trends and more.

founded 2 years ago

MODERATORS

sv1sjp@lemmy.world

413

$1.15 trillion was wiped out from the US stock market today. (feddit.uk)

submitted 5 months ago by sirico@feddit.uk to c/economy@lemmy.world

41 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] tired_n_bored@lemmy.world 77 points 5 months ago (1 children)

I don't think it's entirely true:

Let's suppose there are 500shares trading at $10. The market capitalization is 5000$.

One person now trades one share for 9$. There are still 500 shares around (if the company didn't do a buyback) and now the market capitalization is 4500$. Where did the $500 go? Nowhere. The market cap just represents the perceived value of the company