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

24 Answers

Anonymous 0 Comments

I had to reread your question. The answer is a solid no. If you purchased stock then you purchased it from someone and they no longer have a tie to that stock. The fact that the price has gone up means that other people were willing to buy that stock and other people who used to own that stock were willing to sell it for the higher price.

Now, the people that sold the stock to you are certainly missing out on the extra gains they would have received if they had just continued to hold it, but they are not losing money while the stock goes up. You lose money if you buy stock, the price goes down, and then you decide to sell it.

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