Stock Markets Exposed

If Im making money on the stock market, then whose losing money?

When I make trades on zecco.com zecco makes money because I am charged a fee for every trade. When my stock goes up I sell it and make money and zecco makes money again as well because selling the stock is a trade. If me and zecco are making money whose losing money? If the company is losing money then doesnt it hurt the company by having their stock price go up?

Public Comments

1. A company's stock increases because the equity in the company increases. That company is now worth more, and, in turn, as a shareholder you benefit.
2. for every seller there is a buyer and vice versa..hence, stock market. A corporation post IPO (initial public offering) does not lose or gain money from any swings in theirstock price.. however, if they choose to sell more shares of their stock it will benefit them if they have a higher share price because then they can sell less shares and take in the same amount of money (a secondary offfering)
3. You get your money from some guy like yourself who buys your shares from you. But whether he gains or looses from this transaction depends on whether the stock price goes up or down after he buys your shares. As long as the stock market is going up. Then everyone makes money. But if the stock market goes up and down a lot. Then only those who buy low and sell high make money. While the rest either don't make any money. Or they loose their money to the guys who buy low and sell high.
4. The stock market is not a zero sum game. Person A buys at $1 and sells at $2, B buys at $2 and sells at $3, etc. No one loses. The losses are when the price goes down and the person chooses to sell.