3 ms·

Isn't the sum of net returns fixed to the total amount of stock multiplied by the purchase price?

• dragonwriter 9y ago
  > Isn't the sum of net returns fixed to the total amount of stock multiplied by the purchase price? (1) A value which continuously changes over time based on the decisions of participants in the market is not “fixed”, and (2) that aside, no, the value you suggest is not the same as total net returns. If you if ignore the claim on assets (which is the fundamental purpose of stock), then, the sum of all returns must be zero. But you can't meaningfully ignore that. That's like saying “aren't all money-based markets zero sum, if you ignore the use-value of the goods/services sold”?
  • tabeth 9y ago
    In regards to (1), I don't get it. Just because the value changes doesn't mean it's not fixed. A trivial example is 100 = XA + YB + ZC. Fixed, yet weights for each value can change. And with (2), what's the value then?