The same place that money goes when you lose money in the market :) [0] More seriously I think the key lots of people miss is that when you buy shares of a com

The same place that money goes when you lose money in the market :) [0] More seriously I think the key lots of people miss is that when you buy shares of a company, you don't have dollars anymore. You have shares. Shares are a currency controlled by the company that can issue them (just as the govt can issue dollars). Shares are assets just like a dollar. Also like a dollar, those assets can appreciate or depreciate in value over time. As the company does well, more people will want to invest. People want to invest in a successful company since it means the company will have more profits to give out and more money to continue growing and succeeding to eventually distribute. Most of the time companies go down this second path. As more people invest, fewer shares are available. Demand has gone up, and supply has gone down. Each share is now worth more. But you still have the same number of shares. The reverse is equally true. If a public company does poorly, people will begin to sell. As people sell, demand goes down, supply goes up. Each share is worth less than what it was. But you still have the same number of shares. Their purchasing power has just decreased just as the dollar's purchasing power decreases with inflation. [0]https://www.youtube.com/watch?v=NmFo-LKHGY0 https://www.youtube.com/watch?v=NmFo-LKHGY0 - poof its gone.