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Do I get this right? The only way to make money from a stock is to sell it to someone else. The only reason they buy it from you is to do the same. So everyb
by hyperman1 5y ago
Do I get this right?
The only way to make money from a stock is to sell it to someone else. The only reason they buy it from you is to do the same.
So everybody gets richer, except the one who owns it when the bubble bursts, who loses everything.
This is the definition of a ponzy scheme.
- mike_d 5y agoIn a Stocks 101 sense, yes. You can receive dividends from companies, use or sell your vote to influence company decisions, loan your stock in exchange for money, etc.
- anm89 5y agoThis is very specifically not the definition of a ponzi scheme. actually it meets literally none of the criteria of a ponzi scheme except maybe the fact that money is involved and somebody loses money. if there is a real asset involved in the scheme its just called speculation. not all speculation has anything to do with a ponzi scheme. it would be a ponzi scheme if you advertised this investment as a service and then never bought the actual underlying asset but just shuffled funds through to payout investors. so yeah, literally zero overlap with a ponzi scheme. another angle: by your definition, all investments in commodities where you don't plan to take physical delivery are ponzi schemes and all zero dividend stocks are ponzi schemes (which is wrong)