CB -
Give me a final warning before you cast it in stone.
It looks really good on first reading, but it's stirring up some additional things to think about, and I want to think about it for a bit.
for example -
"...If, on the other hand, Buyer A purchased a share of stock from Seller A for $1, and the stock's price soared to $100, and then crashed back down to $1, at which point Buyer A sold the share to Buyer B for $1, Buyer A has $1, has lost nothing and has broken even (less brokerage fees.) The $99 that Buyer A thinks he has lost never actually existed. Experienced stock traders say that the money has gone to "money heaven."..."
At the time that everyone thinks the stock is worth $100, it can be used as collateral for a margin loan, with catastrophic results. I know you reference this later, but it seems to fit right here as well.
Regards, Don |
