Shares market ish zero sum game?

glarerder

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When a few wins big ish because many more loses? :s11: sho basically it's not investment that generates money but a wealth exchange that allows some gets the money of many?
 

mooseolly

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Investing must look at long term from 5 to 20 years.
Otherwise for those who buy and sell stocks from 1 day to below 1 years can be considered traders as is very short term.
 

Krabs.

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no

it means you buy a fraction of a company .... if the company grow it's earnings and future outlook then the value of your fraction pizza slice goes up

different from buying flower or rock then pass to next silly person at higher price

but because this system involve money .... lots of incentive to fake a better outlook to increase the value and pass to next silly person who believe exaggerated claims of "future"
 

glarerder

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no

it means you buy a fraction of a company .... if the company grow it's earnings and future outlook then the value of your fraction pizza slice goes up

different from buying flower or rock then pass to next silly person at higher price

but because this system involve money .... lots of incentive to fake a better outlook to increase the value and pass to next silly person who believe exaggerated claims of "future"
How did the price of the slice grows? Isn't it by more people buying it as the trust of the company increases with it's value?
 

ckt1978

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When a few wins big ish because many more loses? :s11: sho basically it's not investment that generates money but a wealth exchange that allows some gets the money of many?
no. cos inflation keeps printing more $$.
 

articland05

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stock share price increase because its perceived value increased

ppl think "waaa this coy seems doing well lets buy!" then price being pushed up. once a scandal broke all bubble burst
 

Krabs.

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How did the price of the slice grows? Isn't it by more people buying it as the trust of the company increases with it's value?
it grow because the company didn't dilute the quantity of it's shares while at the same time increase it's current profit and future outlook on more profits

the trust part you mention is when the company leadership say " xx months ahead we expect growth XX"
it can cause the stock to pump if enough people believe his or her words of better future
but in the future no result come out then it can slide back down
 

glarerder

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stock share price increase because its perceived value increased

ppl think "waaa this coy seems doing well lets buy!" then price being pushed up. once a scandal broke all bubble burst
So directly speaking, price increase because people pump in more money correct?
 

glarerder

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it grow because the company didn't dilute the quantity of it's shares while at the same time increase it's current profit and future outlook on more profits
Directly speaking stock price increases because people pump in more money to buy right?
 

Krabs.

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Directly speaking stock price increases because people pump in more money to buy right?
the profit that the company earn can be used to do stock buyback which reduce the quantity in circulation , therefore your pizza slice grow bigger
or the company can distribute out the profit as dividends (let gas out of the balloon)
or use the money to invest for more future profits
 
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