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Response to KingCharlemagne (Reply #21)

Sat Oct 25, 2014, 12:37 PM

27. When you buy a share of a company from another individual you are not "investing" in the company.

 

The company does not see a dime of your money. The person you bought it from gets the money. The value of the stock is based on it's popularity. That popularity can be influenced by the performance of the company but it can also be influenced by a lot of other things. For example, a number of years ago it was discovered that Wall Street Journal advisers were influencing stock prices and cashing in. They would tell people that they recommended a certain stock then they would buy a significant quantity which made the price go up. When the public saw this, they took the advice and drove the price up further. Then the advisers would cash out at the higher price. Of course the price would return to normal and those that "invested" on the way up, lost value. My point is that the value of the stock increase had nothing to do with the performance of the company. CEO's have been found manipulating the value of their company stock via business practices and cashing in via their stock options.

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Liberal_in_LA Oct 2014 OP
Dirty Socialist Oct 2014 #1
DCBob Oct 2014 #2
Lochloosa Oct 2014 #3
Dirty Socialist Oct 2014 #4
Yupster Oct 2014 #5
neverforget Oct 2014 #11
freshwest Oct 2014 #18
KentuckyWoman Oct 2014 #41
Live and Learn Oct 2014 #43
maced666 Oct 2014 #6
justgamma Oct 2014 #7
BrotherIvan Oct 2014 #8
rhett o rick Oct 2014 #9
KingCharlemagne Oct 2014 #12
Algernon Moncrieff Oct 2014 #14
KingCharlemagne Oct 2014 #15
rhett o rick Oct 2014 #22
KingCharlemagne Oct 2014 #26
rhett o rick Oct 2014 #29
KingCharlemagne Oct 2014 #31
rhett o rick Oct 2014 #36
KingCharlemagne Oct 2014 #37
JDPriestly Oct 2014 #19
KingCharlemagne Oct 2014 #24
spinbaby Oct 2014 #34
KingCharlemagne Oct 2014 #35
rhett o rick Oct 2014 #20
KingCharlemagne Oct 2014 #21
LineLineLineLineLineReply When you buy a share of a company from another individual you are not "investing" in the company.
rhett o rick Oct 2014 #27
PowerToThePeople Oct 2014 #39
rhett o rick Oct 2014 #40
TheFarseer Oct 2014 #10
Algernon Moncrieff Oct 2014 #13
LiberalElite Oct 2014 #16
liberal_at_heart Oct 2014 #17
Wounded Bear Oct 2014 #23
randome Oct 2014 #25
Avalux Oct 2014 #28
A HERETIC I AM Oct 2014 #33
ileus Oct 2014 #30
hobbit709 Oct 2014 #32
malaise Oct 2014 #38
greatlaurel Oct 2014 #42
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