DynamicReplic8r
Registered: Feb 2006
Posts: 195 |
02-25-06 05:02 PM
For every buyer, there is a seller. Therefore, when the long makes money the short loses money.
This is easy to see in the future and options markets.
In the stock market, I suppose it may be a little different. If you buy in the primary market, perhaps it could be a positive sum game for investors (at the opportunity expense of the company). But, once you get to the secondary market, and there is a fixed number of shares outstanding, for every buyer there must be a seller...for every winner, there is a loser.
Perhaps you could explain why you think it is not a zero-sum game. Lay out a scenario where more money is made than lost. Do you think that money is just magically created in the markets?
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