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<p>[QUOTE=&quot;NorthKorea, post: 1556811, member: 29643&quot;]Wouldn&#039;t the stock market be a perfect example of a negative sum game? Transaction costs affect both sides of the trade, which would create a negative expected value relative to the zero sum definition...</p><p><br /></p><p>Also, while a single trade (ex expenses) in equities is a zero sum game, I think most people view it in the same vein as a fixed security. Yes, the two aren&#039;t remotely comparable, but to the average investor/saver, the bottom line is whether it&#039;s worth more in &quot;X&quot; years than it was &quot;Y&quot; years ago. By that definition, the equities market is anything but zero-sum.</p><p><br /></p><p>Lastly, there technically IS a house in the stock market. Brokerages are allowed to lend shares to cover short trading out of client accounts. That, coupled with the interest rates structure of short-selling, makes the brokerage effectively a &quot;house.&quot; The inclusion of options into the definition of an equities market would further include market makers into the concept of a house.[/QUOTE]</p><p><br /></p>

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