Obviously these are rules of thumb and do not apply to sophisticated agents that actually know what they are doing.
> In an M&A type stock swap deal the reason this works out is that the merger itself can create value
This is the exception not the rule. If you think you are a) sophisticated and b) in this rare situation - then disregard everything I have said.
> Voluntary trade can create value out of thin air.
If and only if both parties are sophisticated and value the exchanged items correctly. Trade can create value out of thin air. It can also turn value into thin air (booms/busts/fraud etc.).
Capitalism and trade are double edged swords - all I want people to do is watch the downside while they grab the upside.
> In an M&A type stock swap deal the reason this works out is that the merger itself can create value
This is the exception not the rule. If you think you are a) sophisticated and b) in this rare situation - then disregard everything I have said.
> Voluntary trade can create value out of thin air.
If and only if both parties are sophisticated and value the exchanged items correctly. Trade can create value out of thin air. It can also turn value into thin air (booms/busts/fraud etc.).
Capitalism and trade are double edged swords - all I want people to do is watch the downside while they grab the upside.