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And what if a nonnrich person needs access to capital in order to pay workers? Who would buy an IPO if they knew everyone else took your advice and would neve

And what if a nonnrich person needs access to capital in order to pay workers? Who would buy an IPO if they knew everyone else took your advice and would never let the IPO buyer exit? Trading stock is dealing in liquidity. Liquidity is where all the wealth in the market is made available to humans.

crimsonalucard 11y ago
>And what if a nonnrich person needs access to capital in order to pay workers? The most natural/good way of doing this is running a legitimate working business and paying workers with revenue money generated by the business itself. Other ways include borrowing money, getting money from angels/venture capitalists, or money from an IPO or reissuing of shares. >Who would buy an IPO if they knew everyone else took your advice and would never let the IPO buyer exit? Trading stock is dealing in liquidity. Liquidity is where all the wealth in the market is made available to humans. There are many IPOs that don't let the buyer officially exit yet people still buy it: Google, facebook, microsoft. In fact almost all IPOs are like this. When you buy stock from these companies you can't officially redeem your shares for the value it's worth. You can only sell it to another person. Believe it or not the stock market is a market of people trying to outthink each other in buying paper for a low price and selling it for a higher price. No GDP is generated in these exchanges. Magically, the prices for these pieces of paper follows the intrinsic value of the company they "represent." People simply being told that the paper represents a percentage of the company is enough to make people behave as if it actually does even though the owner of the "paper" can't use the paper to redeem a portion of the corporate value. You can only do one thing of monetary value once you own a stock share: Sell it to the next idiot. It's funny how it all works out. You could say that the entire stock market is a bubble of empty dreams. The only time you can officially redeem a stock share is when a company liquidates. But that almost never happens, and people buy stocks expecting it not to happen.
- fsloth 11y ago
  "You can only do one thing of monetary value once you own a stock share: Sell it to the next idiot." Dividens explicitly give the owners of stock a slice of yearly profits.
  - crimsonalucard 11y ago
    ok yes, that too. But not all stocks do this, and the slice is usually incredibly small relative to the price of stock itself. Price swings of the stock will usually greatly eclipse the dividend. Over long periods of time, however, dividends, when reinvested, do have a great effect.

crimsonalucard 11y ago

>And what if a nonnrich person needs access to capital in order to pay workers? The most natural/good way of doing this is running a legitimate working business and paying workers with revenue money generated by the business itself. Other ways include borrowing money, getting money from angels/venture capitalists, or money from an IPO or reissuing of shares. >Who would buy an IPO if they knew everyone else took your advice and would never let the IPO buyer exit? Trading stock is dealing in liquidity. Liquidity is where all the wealth in the market is made available to humans. There are many IPOs that don't let the buyer officially exit yet people still buy it: Google, facebook, microsoft. In fact almost all IPOs are like this. When you buy stock from these companies you can't officially redeem your shares for the value it's worth. You can only sell it to another person. Believe it or not the stock market is a market of people trying to outthink each other in buying paper for a low price and selling it for a higher price. No GDP is generated in these exchanges. Magically, the prices for these pieces of paper follows the intrinsic value of the company they "represent." People simply being told that the paper represents a percentage of the company is enough to make people behave as if it actually does even though the owner of the "paper" can't use the paper to redeem a portion of the corporate value. You can only do one thing of monetary value once you own a stock share: Sell it to the next idiot. It's funny how it all works out. You could say that the entire stock market is a bubble of empty dreams. The only time you can officially redeem a stock share is when a company liquidates. But that almost never happens, and people buy stocks expecting it not to happen.

fsloth 11y ago
"You can only do one thing of monetary value once you own a stock share: Sell it to the next idiot." Dividens explicitly give the owners of stock a slice of yearly profits.
- crimsonalucard 11y ago
  ok yes, that too. But not all stocks do this, and the slice is usually incredibly small relative to the price of stock itself. Price swings of the stock will usually greatly eclipse the dividend. Over long periods of time, however, dividends, when reinvested, do have a great effect.