Fed Cuts Rates: Will RV Rates Follow?
The Fed cut rates 1/2 percent this morning in an effort to keep the stock market bubble growing. I'm negotiating a new RV loan to close in 10 days and the dealer quoted me 5.49% last week. I haven't...
Forum Discussion
mich800 wrote:time2roll wrote:mich800 wrote:
Butt...the market is not a zero sum game.
Lets say you purchased Tesla at $300. It goes up to $900. But the market is crashing and you sell to me on the way down to $700. Did you lose value? Did I gain at your expense? Or did we both win when Tesla closes at $750 the same day.
Still zero.
You purchase at $300, that day someone sold at $300. Zero sum.
Goes to $900. You made no transaction, Zero sum.
Trade shares at $700 with your buddy. Again zero sum.
Close price $750 is not a trade so zero sum one more time.
You may need to rerun the math. Person in my example made $400. And I would be even unless I sold at the end of trading day. Why are you assuming there is a buyer and seller that coincidentally have the exact cost basis?
The person who made $400 got it from the $700 buyer. That buyer doesn’t have his money anymore but rather owns a small part of the company. If he actually sells at $750 he made $50 but the last buyer provided it.
In the end, the item traded was a piece of ownership and the current owner paid the previous ones for it.
When a stock price increases, it doesn’t provide any new money for anyone until new buyers provide it.
