Where does that come from when an equity trader sells a stock at a profit and makes money? The obvious answer is that it comes from whoever bought the stock. That’s correct, but does that mean the person who bought the stock has lost money? Not, at least not unless the buyer has had to sell at a loss. If the price of the stock rises, no one has made a loss. And given that over a period, the markets in general march upwards, equity investors make money on the aggregate.
Beyond college funds: Why parents need to invest for a skills-first future
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