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Nothing changed recently, the situation is bad in some sense since people started treating stocks like toys and not as pieces of companies. Investing used to be
by AdrianB1 6y ago
Nothing changed recently, the situation is bad in some sense since people started treating stocks like toys and not as pieces of companies. Investing used to be building companies and shares were the ways to raise the required capital, now people play with it and more money are extracted from playing with the stock than the actual output of the company the stocks are speculated.
- chii 6y agopeople can gamble if they want to. But the borrowed funds used to do this is probably not as productive as investing in capital infrastructure.
- jl2718 6y agoThey are toys. You pay money and get nothing in return. Let’s say AMZN shuts down. What do common equity holders get? What if they never shut down? Then what do the common equity holders get?
- AdrianB1 6y agoYou get a part of that company and dividends. If you have enough shares, you have influence, control or even ownership of the company. That is the primary purpose of shares.