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
Let’s say you owned a house. You bought it for 100k. At some point you sell it for 200k. You’re making 100k. Not only that, but everyone on your street is also up 100k on their house.
Later on, the house is worth 400k. The guy who bought it from you sells it and pockets 200k profit. And everybody else on the street is also sitting on a $400k asset that they might have bought for as little as 1-200k. So everybody is ahead, as long as there’s a demand for those houses. Not even for all of them, just as much demand as there is supply of people willing to sell at that moment.
Plus the real estate agents and notaries and “for sale” sign manufacturers make money along the way.
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