this post was submitted on 07 Mar 2025
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Economy
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No, stocks are not zero sum like a spring storing energy. They can in fact destroy wealth. Think about it. It would be pointless as an investment if they always paid out exactly what they were paid in.
yeah another way to easily realize that the person is wrong is to look at crypto, the market cap of those coins is based on the current price and the total available, same as stocks. However, you can't liquidate all of Bitcoin into trillions of dollars because the imbalance between people trying to sell and people trying to buy would drive the cost and therefore the market cap down significantly. A $100 million sell-off might wipe $1 billion in market cap.