2 ms·
> If I buy something from someone for $1 then sell it to you for $2, I gained a dollar and you own a share that's worth $2. It's easy to see that this is nonse
by cesarb 2y ago
> If I buy something from someone for $1 then sell it to you for $2, I gained a dollar and you own a share that's worth $2.
It's easy to see that this is nonsense: I could buy a widget from someone for $1, then turn around and sell it to my brother for $10000, does that really mean the widget is now magically worth $10000, and we doubled our collective holdings? No, what actually happened is that we together still have that same $10000, plus a worthless $1 widget.
- robjan 2y agoOnce again, the trade is within the context of a market and the market values the "widget", Apple Stock, Oz of gold or whatever as whatever people are willing to pay for it. That's how markets work. Individual Opinions are largely irrelevant.
- mlrtime 2y agoYou are 100% wrong, the market is not zero sum. A quick google search will educate you here. Derivatives like options can be zero sum, options expire worthless.