Value, in general, does not follow the First Law of Thermodynamics.
It CAN be created and it CAN be destroyed.
And that process doesn't require the exchange of money.
For example, imagine a story breaks tomorrow that accounting "irregularities" were discovered at Nvidia. The stock's value drops 30%, and now the company is worth $2 trillion instead of $3 trillion.
Nobody had to exchange actual dollars to make this happen. Owners of the stock didn't have to send 30% of their share's previous day's value to a broker, or a short seller, or anywhere.
Value gained works the same way. It is measured in dollars, but dollars do not need to be exchanged when the value increases.
It CAN be created and it CAN be destroyed.
And that process doesn't require the exchange of money.
For example, imagine a story breaks tomorrow that accounting "irregularities" were discovered at Nvidia. The stock's value drops 30%, and now the company is worth $2 trillion instead of $3 trillion.
Nobody had to exchange actual dollars to make this happen. Owners of the stock didn't have to send 30% of their share's previous day's value to a broker, or a short seller, or anywhere.
Value gained works the same way. It is measured in dollars, but dollars do not need to be exchanged when the value increases.
Statistics: Posted by bhsince87 — Thu Jun 20, 2024 10:51 pm — Replies 32 — Views 3143