“When stock prices plunge, where does all the money go?”
In light of the recent roller coaster ride the market is taking most of us on, it was a rather apt time for such a discussion!
When the stock market plunges, market value would literally be wiped off the face of the earth. A huge chunk of money for your new house, for your children’s college fees, for your new shoes literally vanished into thin air.
For some individuals that held equity through the Global Financial Crisis (GFC) in 2009, it would seem incredulous for money just to evaporate. Even a stalwart such as Singtel Telecommunications Ltd (SGX: Z74) of the Straits Times Index wasn’t spared and lost close to S$24bil of market capitalization during the worst period of the GFC.
Back in 2013 (not too long ago) the trio of Blumont Group Ltd (SGX: A33), Asiasons ...
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