| i a asking a silly question, why we need a stock market |
 |
|
 |
|
| Message |
|
The Name
|  |
|
l mean how it helps to all, is it helps to poor people? l do not think so. the stock market is damn solution for rich persons
|
|
|
hehe
|  |
|
It was initially to help companies to raise cash for growth and expansion.. they offered shares in the company to people who had money available for investment. It has become more speculative as many investors 'gamble' on the future profits of companies. It is NOT just for 'rich' people, anyone with a few hundred dollars is able, if they wish, to purchase shares in companies, receive dividends and hopefully make a gain on their investment.
|
|
|
Dudley
|  |
|
Well, let me start by saying that those ''rich persons'' - at least some of them - r not as rich as they were sixty days ago. Also, because of the stock market, many companies r not worth nearly as much money as they were sixty days ago. That being said - on to ur qestion. Even though the stock market seems to be very complex in nature & perhaps diffcult to understand it did not start out that way. What is now a truely goblal mess of leveraged, complicated, greed driven fininacal instruments, one of which is a stock, all started out with the best of intentions & was the art of smiplity.
Perhaps the best way to expleain it would be with an example of how thigs got going way back before computers, trading programs, & stock brokers. Let is say u discovered a gold deposit way out in the desert. At first u dug & dug & made a little money. Then one day u hit on the idea that if u were ever gong to make any real mony, u need more euqipment than a shovel & pick. You also need a wagon to haul ore, horses to pull the wagon, & timbers to support the hole u were digging in the ground, Great idea, except u need more money than u had to get these things. An idea developed. If u could get some people to give u some money in return for them getting a little pice of the action, u could expand & make more money for yourself. Now the other pople wer not just going to give u the money with no proof of their ''onwership'' in a small part of the operation, so u gave them a piece of paper that said they owned or held some ''stock'' in a part of the undertaking. You may have to had to get several people to agree to give u some money inorder for u to buy the equipment & goods u needed to expand u business. You still owned most of the business, but a few other people owned a small part too. They had some ''stock'' in what was going on. Now this ment a couple of things. First, if u made any money, u got to keep most but not all of it. A little went to those who had purchased stock in the enterprize. Secondly, if u made a lot of money, that interest or ''stock'' u sold to thsoe few people was worth more to them than they had paid for it. Now if some other people thought u might make even more money than expeted, they might even offer to buy that stock from one of the people u had sold it too. Bingo- a market has been created for the ''stock'' & u had a different stock holder that u started out with. Repeat this process a few thousand times and, as u can see the mushroom effect of selling those few shares of u operation to someone else could get a little out of hand. ''Stock'' had been sold & a market for the instrument had been created all because u needed more operatin capital to do u business.
It helped us all, bucause without the issing of stock to raise the vast amounts of money needed to start up & run a large compay, many thoousands of jobs would never have been created. Before all these people got a job, they were poor. The people who bought the first interest in that first gold mine may have been a bit poor also & it help them gain a better life style. Many, many, many, of the rich persons u refere to got that way by buying small interest in small operations that became the gaint opertains of today.
The problem seems to be that everyone would like to have more money & it seems to never be enough. As the selling of these interest in business got more common they also got more complex & more difficuld for the average person to really understand. You can bu them betting they will go up, u can buy them betting they will go down, u can buy the chance to buy them in the future at a pre-set price, betting they will be worth more than u agreeded to pay for them. Each of these ways can make u a little money.
This expantion of the complexity goes on & on. It got so big that peple got jobs just keeping track of who owned interest in what. People got jobs in giving advise on which interest u shoul buy in what company if u wanted to make some money - & remember everybody wants a little more money & then a little is just not enough.
So, here we r today, We have lap tops & any person in the world cnd decide to buy what ever type interest they think will make them a little money - & they can make the trade for less than 10 bucks.
Now u see u neighbor buy a 1,000 shares in some company for 4 bucks a share. The next day he finds someone who thinks if worth 5 bucks, so the shares r placed in the market again & u neighbor make a cool thousand dollars in 24 hours. You get into the trading business & maybe make a little money youself.
This story could go on for about a hundred pages, so let is cut to the chase. More & more money keeps getting pumped into the stock market, in one sector or another, & the price of the stock keeps going up & up because everybody thinks they r gong to make a little mon
|
|
|
Couture
|  |
|
so the fat cats can rip you off and get rich.
|
|
|
|
|
 |
|
 |
 |
|
 |
|
| Lates Messages |
reason for yesterday's gold boom
is $500 enough to start investing in big compaines now that their stock is down and the market is in turmoil
sunk cost or opportunity cost
we have an investment with a building society is our money safe if the society collapses or is bought over
How does naked short selling work exactly and how could that be a reason the market is down?
I read WaMu is tanking. My 410K is invested in Washington Mutual Investors Fund. Is it safe?
how safe are money market accounts - and where do they invest
$5.20@ a 20 margin is what
is my cash safe sitting in my investing account
will the stock market get worse before it gets better
How do friends invest in my LLC and see a return on their investment?
please explain with any examples as i am new to stock market about sensex
do you see any good in the stock market crash
Will The World Financial Markets Recover Quickly
What exchange is 0208018?
what is the price of lehman brothers shares
Where can I buy silver at near market prices
Questions about investing in gold
How to Open a New SBI A/c In ICICI Bank?wht is the rules?who i should contact???
how to short sell in india
what is the stock market
how can i show nse and bse stock details on my own website
Stock market, what's going on
were is the money to be made is this economy recession
What would you do if you were holding onto WAMU Stocks?
A project requiring a $3.2 million investment has a profitability index of 0.97.
Paypal Reversal Question
Since stock market is so low right now which stocks would be best to buy because they will go back up soon
stock market crash effect on metals market.
what will happen to WAMU's stock price if it gets bought
Under what conditions can a preferred stock not pay you dividends
i am a med tech, and im planning to put up labotary soon, where do you think is the best place around manila.
GOLD 9/17/2008 IS Blank.....????????
what is the current trading price for the maker of office xp
Investment Banking Still Exist
will stock market heading for a major crash in 2008-2009
What is going on with coal stocks?
Was Henry Paulson fired from Goldman Sachs? I am curious how he parted ways before ending up as treasury sec.?
Are the target retirement date funds too conservative?
what do the stock exchange points mean
i want to buy stocks, in us markets (specifically GOOG on NASDAQ). But i am based in uk. how do i do this
Where can I find free market research and industry reports
I have $1000 to invest....AIG anybody
How much should I allocate among these funds? ??
Investing advise anybody
How does the recent financial crisis affect first time home buyers?
can i open an account with merrill lynch
Should I short the Fannie mae and Freddie mac shares
Now that the SEC has stepped in, will "BEAR RAIDS" cease
Buying opportunities in the down market
eye screw forums
,
factory building forums
,
gear wrench forums
,
hydraulic lifter forums
,
interior sliding doors forums
,
model ships forums
,
oil tanks forums
,
wiring accessories forums
,
zinc coating forums
,
,
credit card for students forums
,
consumer credit report forums
,
concrete cement forums
,
christmas ornaments forums
,
building block forums
,
bottled water forums
,
best grain sheet forums
,
best credit card rate forums
,
athletic wear forums
,
grain sheet forums
,
glue tape forums
,
garbage bin forums
,
full credit forums
,
free credit report forums
,
flat bar forums
,
dry wall screw forums
,
dish cloth forums
,
dior sunglasses forums
,
dental equipments forums
,
cut off saws forums
,
current mortgage rates forums
,
culture stone forums
,
rayban sunglasses forums
,
portland 42 forums
,
nokia phones forums
,
mortgage debt forums
,
machinery part forums
,
load cells forums
,
line pipe forums
,
kitchen towel forums
,
iron oxide forums
,
wholesale price forums
,
ventilation fan forums
,
uv lamp forums
,
unlocked phone forums
,
turning parts forums
,
stone cutting machine forums
,
spanish mortgages forums
,
school loan consolidation forums
,
rock phosphate forums
,
|
|
|
|
 |
|
 |
|
You can post new topics in this forum You can reply to topics in this forum You can edit your posts in this forum You can delete your posts in this forum You can vote in polls in this forum
|
|
|