A zero-sum game is a situation in which the total gains and losses of the participants add up to zero. In other words, in a zero-sum game, one person’s gain is exactly balanced by the losses of the other participants.
Stock markets are generally not considered to be zero-sum games. In a stock market, the total value of all the stocks listed on the market can increase or decrease, depending on a variety of factors. When the value of a company’s stock increases, the company’s shareholders may gain, but this does not necessarily mean that other investors will lose. Similarly, when the value of a company’s stock decreases, the company’s shareholders may lose, but this does not necessarily mean that other investors will gain.
In fact, many experts argue that stock markets can create value, rather than simply redistributing it. When companies raise capital through the stock market, they can use that capital to invest in research and development, expand their operations, or pay dividends to shareholders. This can create value for the company and its shareholders, as well as for the broader economy.
Overall, while stock markets may involve winners and losers in any given transaction, they are not typically considered to be zero-sum games.