zero-sum game

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In other words, is it a win-lose relationship, or a win-win relationship i. Poker is an example of a zero sum game. The sum of the amounts of some players, will always equal the combined losses of the others. While some types of trades are zero sum, due to the nature of the trade, the stock market itself is NOT a zero sum game.

However, contract based trading , such as that represented by options or futures, is indeed a zero sum game, since, only one party will gain on a specific contract.

Believing that the stock market is a zero sum game, such as poker or gambling, is a common misconception — in some cases, perpetuated by Hollywood, so most people just take movies or hearsay for granted as truth.

For more information about this topic, as well as game theory, economics and other background information please consult the following Investopedia article: You buy stock for company X at time T0. Value has been added to the economy.

So, in this scenario, you have gained value due to the ownership of the stock, and no other party has lost value, since values was ADDED. Therefore, it seems to be a matter of fact, not of opinion or belief, that the stock market is not a zero sum game. You have completed some achievement on Steemit and have been rewarded with new badge s:. You got your First payout Award for the number of upvotes received. Click on any badge to view your own Board of Honor on SteemitBoard.

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