Profits are multiplied by the percentage gains, right?


  • 0
    H

    This is a bad question. How often do stock prices drop to zero in the real world? How often do we consult future stock prices to make our decisions?

    With stock prices going to zero, it is possible to make infinite profit. You can buy infinite shares at 0 and then sell for infinite dollars when the price hits $0.01.

    Also, some other commentators failed to recognize that you multiply your profits by each percent gain in stock price. Consider the price array [1, 3, 5, 1, 100]. You buy at one and then sell at 5, earning 400%. Then you buy again at 1 and sell at 100, making a 9,900% profit. 49,900% is then the total profit. Or am I way off?


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