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Old 11-14-2015, 10:40 AM   #6
ranchlandsselling
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Join Date: Jan 2011
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Quote:
Originally Posted by Slava View Post
Well that's right, but it's only half of the equation. For you to "take part in the upside sell" you have to sell your shares to someone else. In other words you have someone else to buy those shares for say $1.25. I suppose that this is a bit abstract, but economically there is only so much money in circulation in an economy at any one time. So for you to gain that $0.25 means it is coming from somewhere, and someone else is losing that $0.25 for it to end up in your pocket here.
No it's not.
The gain is from growth. That's generally how the economy works. No one lost $25 cents. Just like when the bank writes a mortgage or sells any lending product. I take that money and do what I please with it (could be positive, could be negative) the bank then earns interest on that money. Same with the deposit of funds, I deposit, early paltry interest on the deposit, the bank can go out and lend a greater amount of money using my deposit as a reserve allowance.

In the stock/equity example I sell at $1.25 to someone else who may sell for $1.50 down the line. There's doesn't always have to be a loser.

You're making the assumption that the second or third buyer is going to be a new loser. Which isn't necessarily true.

Last edited by ranchlandsselling; 11-14-2015 at 10:43 AM.
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