I just got into the stocks market. AFAIK every transaction must have someone selling and someone buying, both thinking that they will be making money. How can both be making money?
Does that mean at least half of everyone in the stocks market will have to be losers?
In: 97
I buy a stock for $1 and sell it to you for $2.
You buy the stock for $2 and sell it to Ronald for $3.
Ronald buys the stock for $3 and sells it to Allison for $4.
The company runs into problems and Allison sells her share for $1.
How many people in this line of transactions lost money?
There’s 100 factors that can go into an individual persons decision to buy or sell a stock, but no there’s not always necessarily a ‘winner’ and a ‘loser’ in a transaction. Everyone has different investing goals. Maybe someone makes some money on a stock but the stock isn’t increasing in value as quickly as they’d like, so they sell it to someone else who’s more willing to make profit over the long term.
Latest Answers