Who gains the billions lost in a stock market crash? Where does the money from the pension funds go? | Homework.Study.com (2024)

Question:

Who gains the billions lost in a stock market crash? Where does the money from the pension funds go?

Stock market crash:

A stock market crash is a major deterioration in stock rates, which leads to a great loss in the stock wealth. Some of the causes of stock market crashes are, a rise in stock prices for a long period, extensive use of margin debt, and market participants leveraging the market prices. The constant shifting of prices down by investors in the stock market can also cause a stock market crash

Answer and Explanation:1

The reality of this is that the money in a stock market is "virtual" that is, it never existed physically. This, therefore, means that if...

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Who gains the billions lost in a stock market crash? Where does the money from the pension funds go? | Homework.Study.com (2024)

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