When you buy a company's stock, you are buying a fraction of the company.
If a company has 10 million shares
and if the stock price goes up $20 dollars in a given year
then is it logical to say that all the buyers and sellers during that same year, all of their "monetary gains and losses" will add up to $200,000,000.00 ?
Because if it is, then it sorta implies that to make profits in the stock market, you either make an "average profit" and if you do superior, your gains are at the expense of those who do inferior.
I define these in the following inequality
inferior
I ask this because I have studied finance and there are losers who are smart yet not logical enough to see that people who simply "hold stocks" for an entire given year simply shrink the amount of shares available for trading during that same year.
Therefore concluding people who "actively trade" only do so at each other's expense, and their group makes no "magic profit"
Because
2007-07-13
08:07:08
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7 answers
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asked by
Voltaire's book Candide
3