3 ms·
> At the end of the day stock picking truly is a zero-sum game If stocks give dividends, then stock picking isn't a zero-sum game.
by supahfly_remix 8y ago
> At the end of the day stock picking truly is a zero-sum game
If stocks give dividends, then stock picking isn't a zero-sum game.
- ravar 8y agoTo expand on this , growth is real , and it's not random. Value for society is created by having money directed towards more beneficial projects.
- thaumasiotes 8y ago> If stocks give dividends, then stock picking isn't a zero-sum game. I don't understand this. "Stock picking" traditionally refers to buying or selling stocks through the stock market. It doesn't create or destroy any stock, and the dividends are invariant with respect to who owns the stock. That makes dividends perfectly zero-sum. If I buy a stock from you, my gain from getting the dividend is exactly equal to your loss from losing the dividend. What am I missing here?
- jiggunjer 8y agoThe selling party doesn't lose dividend, they just don't gain it. Losing it would mean the dividend amount is subtracted from their account.
- thaumasiotes 8y agoThe more common argument for stock trading being zero sum is that if I experience a gain after buying a stock from you, you experience an equal loss (by selling the stock when it would have gone up). Dividends do not alter that argument in any way. The trade is described as zero-sum because the total amount of value it produces is zero -- in the trade scenario, I gain X, and in the no-trade scenario, you gain X. X minus X is zero. My gain is your loss.