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Tip of the Day Set Up an Automatic Savings Plan

Set Up an Automatic Savings Plan - This may sound like it is really difficult, but it is not. If you have a checking account, you can set it...

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Zero-sum Game

Definition: Zero-sum games involve situations in which one person's gains are the result of another person's losses.  No wealth is created (or destroyed) in these games.

Examples: Examples of zero-sum games include options and futures.  If a person makes money on an options or future contract, it means the person who sold it to him lost money.  Another example is gambling: either you or the house win.

What about the stock market? The stock market is not a zero-sum game because stocks are not simply investments traded from one party to another.  Rather, they're representative of the underlying business.  So if the business creates value, the stock will do so for the investor as well.

 

Discuss It!

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golden age cheese said:

Why the stock market relates with this zero sum game. I didnât get the point in which that you relate the stock market with the zero sum game. I really want to know what is really happening here in this discussion about the stock market.

assignment help uk said:

Zero sum games are completely new to me and i am very excited to about them here. Most of the people play in their mean time. Nice saying on stock market too.

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Definition of the Day Phone Switching

Phone Switching This give investors the ability to transfer currency between various mutual funds, as long as those funds are part of the same family, on the telephone. This is much easier than heading down to the manger's office in order to get these results, as it can be done...

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