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[RT] Zero Sum Game?



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Scenario A

Entity A & B buys stock from entity C. A & B pay $50. Entity C collects $100.

Stock falls to $25.00

Entity A sells @ $25.00 to entity C. Entity C has $75.00 remaining.

Stock falls to $5.00

Entity B sells to entity C. Entity C has $70.00 remaining.

Start - A + B = C

End - A (+$25) + B ($+5) = C (+$70)

Scenario B

C does not want to sell. Price drops to $0.00

A=$0.00 + B=$100.00 = C=$!00.00

Equity certainly evaporated for A & B. But not for C.

Zero sum game.
  






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