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
No. Buying and selling stocks is not like buying and selling crypto or beanie babies. Stocks themselves provide value. Some provide a portion of the company’s revenue back to stockholders in the form of dividends. Others focus on growth, either on the assumption they will be bought for a large amount later in time or will provide dividends later.
Of course it depends on how you invest. Some people try to time their buying and selling to correspond with highs and lows. They are assuming they know more about the market than the average investor. Which if you are a professional analyst, maybe they do. If they are a kid in their parent’s basement with a Robinhood account, they probably don’t.
But even then, since most companies do indeed grow over time, they still can profit in end.
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