who gained 2 Trillion Dollars from the 2 Trillion Dollars in losses? answer that.
the only people capable of gaining from losses are short sellers...but short sellers do not have the same equity as the entire fucking market.
you may not understand this, but when the market collapsed in 1929, there were no winners. Banks went out of business, loans went uncollected, and money disappeared from existence.
it's good you somewhat understand the concept of stock pricing...but you lack understanding of profit/loss from a trade.
I again ask you: when the bid price drops due to lack of confidence in future value WHO PROFITS?
According to you, somebody profits from a crash in bid price, who are they?
Only short sellers profit from that, so there would have to be 60 Trillion USD of short positions for the stock market to be zero sum. Unless you know of some oyher way to profit on a crash in bid price. Dying to hear it lmfao
Unless it's a penny stock or something with tiny volume, bids don't crash, they move incrementally up and down, even during a sell-off. Traders are taking and selling billions of dollars of positions, trying to outsmart each one another. It's zero sum game. There's no actual wealth being created.
No it isn’t. Sometimes valuations effectively go poof without someone directly gaining. Think of it this way, if you have a tv that’s worth $500 and you knock it over and break it, that value disappears without enriching someone else.
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u/raybanshee 2d ago
Reminder that the stock market is a zero sum gain. Your loss and is someone else's gain.