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
In a sale of stocks, or goods, services, etc you are exchanging values. Dollar amounts are a benchmark to measure value. (as opposed to trading my big sack of wheat for your chunk of meat.)
So in the stock market even if you paid a bazillion for a stock and got bupkiss when you sold it, you got current value. (baring any bizarre manipulation) that’s what it was worth to you, or the next buyer/seller.
Even if you bought a stock as young person and didn’t sell it till really old, and say you bought for $1 and sold for $100, you might have ‘lost’ money, lost value, because relatively inflation has caused the prices of most things to go up even more.
Loss of value happens when perceptions change, reality intrudes…like with NFTs People that spent MILLIONS for ? a digital file (that anybody can find on google images anyway…so???) suddenly find that million dollar investment worth maybe ONE dollar?
consider someone who goes on the PBS Antiques Roadshow and finds out the garage sale painting they bought for a dollar is a lost old master worth 1 million. The person selling it for a dollar got what they perceived the value was at the time.
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