Is the stock market a zero-sum game?

In the stock market, trading is often thought of a zero-sum game. However, because trades are made on the basis of future expectations and traders have different preferences for risk, a trade can be mutually beneficial. read more

“This concept confuses a lot of people, but it’s important because it touches on how stocks are money-like, but not necessarily high on the moneyness chart (because they must be converted into deposits in order to be used for transactions). read more

No, the stock market and investing in general is not a zero sum game. Some types of trades are zero sum because of the nature of the trade. But someone isn't necessarily losing when you gain in the sale of a stock or other security. I'm not going to type out a technical thesis for your question. read more

No, the stock market is not a zero sum game. This idea comes from the false notion that in a buy/sell transaction, one person is right and the other is wrong about the fundamental value of the business. In fact, there is some literature which discusses this concept in detail. read more