In the stock market,for someone to make money, does that mean someone has to lose money?

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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

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Anonymous 0 Comments

>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?

Your question is awkward, but I think you are asking this:

“If John buys a stock at price ‘X’ from Adam, and the stock rises to price ‘X + Y’ in 1 year, did Adam lose ‘Y’ dollars?”

That answer is emphatically “no.”

If I have an old table I no longer want and sell it to a neighbor for $10 and that neighbor sells the table online to someone for $100, have I lost money? No, but it does feel bad to learn that I probably could have received more money from the table.

One might even argue that such behavior is unethical in some way, but I didn’t *lose money.*

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