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> If someone is making money with a stock, some other person is losing money right? Not necessarily. Investing in stocks isn't necessarily a zero-sum game like
by amf12 6y ago
> If someone is making money with a stock, some other person is losing money right?
Not necessarily. Investing in stocks isn't necessarily a zero-sum game like a lot of people assume. Both the buyer and seller could make profit on a transaction.
Imagine person A bought AMZN for 1000 and later sold it to person B for 2000. A made 1000, and now B made 1000+ on it.
- thinkingemote 6y agoThere's also people C and D who sold to A and bought from B... So looking at it from a whole is different from just the buyer and seller. There's a chain. I agree it's not a zero sum as stocks can rise independently of just market activity if the company is doing well.