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TV Drama
by Raymond Byabazaire - 08/31/26 09:46 AM
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Joined: May 2003
Posts: 2,814
Top 100 Poster
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Top 100 Poster
Joined: May 2003
Posts: 2,814 |
I don't think I believe this. Now my thinking here is probably too simplistic but tell me the flaw in the reasoning. Let's suppose I have $100, Joe has $10 and Bill has a share of stock. I buy the stock from Bill for $100. I hold it for awhile and then decide to sell it but no one wants to buy it. So I sell it to Joe for his $10.
At the end of the game, there is still $110 and one share of stock - it's just in different hands. If the underlying value of the stock was really $50 then Bill came out $50 ahead, Joe came out $40 ahead and I came out $90 behind. But no wealth was lost.
Scott
The missing piece here guys is that Bill paid $130 for the stock! ! You are assuming that he bought it for zero ! ! Bill lost 30% and you lost your ... well... you know
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