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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.
ok, several questions arise (in my mind, anyway). the assumed
universe of this gane (or the "system" so to speak) are players A B &
C. however the following statement is troubling:
"stock falls to $xx.00".
what establishes this movement in price? do players A B & C mutually
SET the new price? among themselves, why would they agree to drop the
price? they wouldn't, would they?
the new price is established by players OTHER THAN A B or C -- the
"market" -- consisting of other players. so players A B & C are
really not the entire arena of the "game", are they.
to take a subset of the market & show that it's a zero-sum game for
THAT SUBSET doesn't prove that the entire market is a zero-sum game.
the above "game" does not seem well defined, at least to either of my
(taxed) brain cells.
- *lk
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