When I am buy stock at a lower price point than it was trading a 1 day or week, month or year later, does it mean that somebody during that same time frame is losing the difference?
In: Economics
Person A buys one stock at it’s initial sale for $10. 1 year later the company is doing well and it’s worth $20 so Person A decides to sell their one share.
At the same time you decide you want to buy stock in that company because they’re doing well. You buy Person A’s share at $20. Person A made $10 from this sale.
The company has a moderate year and is up to $22 but you decide you want out. You list it for sale and Person B decides they want in, and buys your share. You made $2.
So far the stock has been sold two times and both sellers have made money.
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