What you are saying here is right, you can destroy billions in value without even any buying or selling.
Market cap of a company can go up 100 billion dollars just with a few hundred dollars traded. Or down.
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i disagree
the amount of cash can change on the sidelines
fed or other central banks prints new money
people borrow money to invest
all one way or another increases the money on the side lines
in fact you can have the money on the sidelines stay the same but one person who already owns the stock borrows on margin to buy more ie no new money came from the sidelines
Yes correct, I already covered this.
Creating new loans or paying them back or defaulting will change aggregate cash.
But once it's there it's a hot potato, someone gotta hold it.
I meant the amount of cash that is involved in a buying/selling transaction, people here think that when someones bank balance is used to buy a stock, that cash is not 'in the market and off the sidelines' It is not.
Good time for nvidia and other ai stocks etc to do capital raise to take advantage of being "trendy", for now.