Is the stock market a zero-sum game: Do people invest in the stock market in the hope of making money? Any financial expert will tell you that investing in stocks is one of the best ways to build long-term wealth. The problem with stocks is that their daily movement is impossible to predict with 100% accuracy.
The value can grow exponentially in the long run. To capture the true value of the stock market, investors must stay invested for the long term. Individuals can achieve this goal by employing a "buy and hold" strategy. While some people believe that stock markets can generate long-term wealth, others believe that stock market investing is a zero-sum game. The media has also frequently highlighted this.
Long-term investors are frequently asked, "Is the stock market a zero-sum game?" So, in this article, we'll go over this concept in depth and try to come up with a concrete solution. Continue reading to learn whether or not the stock market is a zero-sum game.
What Is a Zero-Sum Game?
This discussion is meaningless unless the zero-sum game is fully understood. A zero-sum situation is one in which one person's profit is equal to another person's loss.