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
Buying stock is (well, should be) an investment in a company. Your investment helps the company do better. Raising wages, buying equipment to expand, etc. You bought 10 shares at $20 each. Now they’re worth $25. When you sell at the new price, no one lost money, per se. If those shares go up in value, the new investor will make money, too. But it’s a risk. If the company does poorly and the price of stock goes down you would have to wait and hope the share price goes up or sell yours at a loss.
That is the ideal. But there are tricks that can be done to game the system. There are ways to make money even when share prices go down. I personally don’t understand that aspect.
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