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
Prices for stocks constantly go up and down. If market price for a certain stock is $100 today, a seller who bought the stock at $50 per share is going to make a big profit. But if he bought it at $150 per share, he’d be selling at a loss.
But people sell at a loss all the time. Maybe they think it’s better to sell now because they think the price will only keep dropping. Or maybe they need to cash to pay for some emergency. Or maybe they found something else to invest in that they really believe will jump up very high in price.
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