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Strategies & Market Trends : Are you considering quitting your dayjob to daytrade?!
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To: jebj who wrote (477)2/9/1999 7:23:00 AM
From: Hermann Ragaller  Read Replies (1) of 611
 
Jebj,

Let's put what you said in a table:

cost revenue
Initial owner 0 20
"A" 20 30
"B" 30 40
"C" 40 50
You, the last buyer 50 ?
-----------------------------------
total 140 140

Do you see now why it is a zero sum game?
All the previous buyer's profits have been paid by the last buyer.

This only works as long as new money is constantly flowing into the
market. The money must come from an external source (ultimately from
the federal reserve as the only institution which can "generate" new
money from nothing). One can also view this as a kind of inflation.
There is no "real" value behind a stock except for the liquidation
value from the balance sheet.

HR
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