re: #132 Old Liberal

The stock market prices are set daily by buyers and sellers. When the stock price goes up, there was one person buying in and one person selling. The seller decided it was no longer attractive to hold that stock. The buyer thinks they got a bargain. One of them is wrong.

it’s a bargain because both sides agreed. and both sides agreed because they both got what they wanted and/or needed

you have to factor in why people buy and sell what they do when they do.

- did they need to raise cash for some other purpose - liquidity has value
- was there a better investment/return for that money in something else
- was it a rebalancing of a larger portfolio
- did they come into extra cash that otherwise would have sat idle
- was this a good investment compared to alternatives (ie a savings account)

this and more all matter in how people make these decisions