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The accounting isn’t zero sum with stocks in that capital is supposed to beget more capital through value creation. That’s the intrinsic value of company shares
by johnwheeler 9y ago
The accounting isn’t zero sum with stocks in that capital is supposed to beget more capital through value creation. That’s the intrinsic value of company shares. So, while there might be a winner and a loser, the world still ends up with more ‘wealth’.
- AznHisoka 9y agothe IPO is supposed to work this way. After the IPO, all bets are off. It's just traders, machines, and ego's trading exchanging among each other. Once upon a time, having a share of a company always meant you were getting a share of their revenue (dividends). Now, it's primarily hoping there's a bigger fool. Which 99% of the time there is because a lot of us put money into the stock market without consciously investing (ie. 401ks)