What is wrong with buying low and selling high? Does it damage the economy? Does it help the economy? ?

Question

What are the negative and positives about buying something for a low price and selling it high?

Answer 1

In terms of the economy there are no negatives when someone buys low and sells high. Investment is a crucial part of any economy as it helps the economy to grow. Without investment there would be no capital for businesses to produce new goods and, eventually, generate more money into the economy.

Without investment the economy would not grow. Buying low and selling high just means that you bought into that company and practically loaned it money to help it start new projects. By selling higher it means the company was successful and has made money from it, from which you get a piece of when you sell higher as a reward for investing in that compant.

Answer 2

any money exchanging "helps" an economy. the negative is greed, of course.

Answer 3

This is a question asked by every investor. I believe it helps the economy to remain progressive. Every investment is made by speculation alone and  many times, speculation is wrong. Those who are lucky enough to predict the market benefit but many more suffer losses. Investing is like gambling. In 1979, you could have invested in Microsoft or DeLorean. The choice is easy today but in 79', more people invested in the automobile company.

Answer 4

Nothing is wrong about buying low and selling high, it's a rational behavior.  

The only negative and only scenario wherein you can sell high (above average profit) if you managed to accumulate/ monopolize (because of low price) certain good or product or even services.   But even then, in a competitive market, prices will adjust up based on your accumulation.