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
No, imagine that you buy 1 stock @ 1$ per stock at an IPO (the initial stock emission). You then sell it to me for 10$ and make 9$ profit. I then keep the stock until the company decides to liquidate itself (sell off all assets for cash) and hand out all the cash it now has to stockholders, giving me a total of 11$. The stock is now worth 0$ because the company doesnt exist anymore, but it still earned both of us a profit.
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