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I sort of get what you mean, but I'm not sure if it makes sense. If I have some FB stock and sell it to you for $303.17 (price as of this moment), I gain $303.1
by civilized 5y ago
I sort of get what you mean, but I'm not sure if it makes sense. If I have some FB stock and sell it to you for $303.17 (price as of this moment), I gain $303.17 and you lose $303.17, and a stock changes hands. Is there more money from this transaction that needs to be parked somewhere?
There's only "more money" if you look at one side, and only one side, as "the savvy speculator" who is always looking for a new place to park the money.
- mgh2 5y agoThe people who move stock prices significantly are usually the ones doing it by volume - i.e. institutional investors (ex: Cathy Wood). Retail investors are a recent phenomenon when in aggregate. The question still remains, where are they going to park these profits?
- civilized 5y agoI still don't think that a stock price going down means there is excess money in the economy that needs to be parked somewhere. Someone has more money and someone has less. This is still true when we're talking about institutions. Some institutions profit and others lose. Cathy Wood's record is far from perfect and she is losing big time right now.