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Sounds like the tooth fairy. I could get articles and arguments to show everything you have said is wrong, but it's not worth my time. Like Dane_in_LA point it out, stocks have nothing to do with profits.
Oh please, if that's what you actually think then I was right about you not understanding the stock market. What I just described is textbook stuff going back centuries.
Companies issue stock to raise money for various corporate operations. People who buy those stocks then become part owners of the company. If you don't know that you really truly know nothing about stocks and the stock market.
Oh please, if that's what you actually think then I was right about you not understanding the stock market. What I just described is textbook stuff going back centuries.
Companies issue stock to raise money for various corporate operations. People who buy those stocks then become part owners of the company. If you don't know that you really truly know nothing about stocks and the stock market.
That part was funny. Textbooks aren't the new gospel.
The only difference between the tooth fairy and the stock market is that children realize after a few years it was just a nice story. Adults [with the exception of a few] never realized the stock market is a pyramid scam.
I know this type of claims need to be backed up but it is useless.
No point discussing it when people can't see how something as obvious as this has to do with increasingly more people unable to pay rent and feed themselves.
The three richest people in the US – Bill Gates, Jeff Bezos and Warren Buffett – own as much wealth as the bottom half of the US population, or 160 million people.
Analysis of the wealth of America’s richest people found that Gates, Bezos and Buffett were sitting on a combined $248.5bn (£190bn) fortune. The Institute for Policy Studies said the growing gap between rich and poor had created a “moral crisis”.
His Amazon company controls 30% of all online merchandise sales, BUT AMAZON HAS NEVER MADE AN ANNUAL PROFIT!
Is Bezos in the business of selling common and preferred stock to investors or is Bezos in the business of selling merchandise at a profit?
In the opinion of some businessmen and finance people, Amazon exists to constantly get more investors rather than earning a profit. Amazon is wiping out small town merchants across America because Ma & Pa stores can't compete with a marketing giant, such as Amazon, which loses money with each sale of merchandise.
I hope the Security & Exchange Commission (SEC) and the US Department of Justice step in and take down Amazon and prohibit additional stock sales until the company starts making a profit. Remember the dot com companies of the 1990's that disappeared almost overnight when investors started to realize companies that didn't earn a profit really weren't worth anything? Those dot com companies never earned a profit and they all failed. Investors lost billions and the American economy crashed. If that happens again, Bezos will be held accountable and it won't be pretty. Let's hope the federal government steps in before something like that happens.
His Amazon company controls 30% of all online merchandise sales, BUT AMAZON HAS NEVER MADE AN ANNUAL PROFIT!
Is Bezos in the business of selling common and preferred stock to investors or is Bezos in the business of selling merchandise at a profit?
In the opinion of some businessmen and finance people, Amazon exists to constantly get more investors rather than earning a profit. Amazon is wiping out small town merchants across America because Ma & Pa stores can't compete with a marketing giant, such as Amazon, which loses money with each sale of merchandise.
I hope the Security & Exchange Commission (SEC) and the US Department of Justice step in and take down Amazon and prohibit additional stock sales until the company starts making a profit. Remember the dot com companies of the 1990's that disappeared almost overnight when investors started to realize companies that didn't earn a profit really weren't worth anything? Those dot com companies never earned a profit and they all failed. Investors lost billions and the American economy crashed. If that happens again, Bezos will be held accountable and it won't be pretty. Let's hope the federal government steps in before something like that happens.
No offense but really weak argument pilgrim....
People like yourself have said this for years and years while people like me have made more than many will ever earn or see in their lives... just investing in amazon..
as to SEC, just keep hoping buddy see how that works out of ya. and while you keep hoping and dreaming of the day those damn liberals get theirs, i and others like me will continue to enjoy this massive multi bagger.
That part was funny. Textbooks aren't the new gospel.
The only difference between the tooth fairy and the stock market is that children realize after a few years it was just a nice story. Adults [with the exception of a few] never realized the stock market is a pyramid scam.
I know this type of claims need to be backed up but it is useless.
No point discussing it when people can't see how something as obvious as this has to do with increasingly more people unable to pay rent and feed themselves.
The three richest people in the US – Bill Gates, Jeff Bezos and Warren Buffett – own as much wealth as the bottom half of the US population, or 160 million people.
Analysis of the wealth of America’s richest people found that Gates, Bezos and Buffett were sitting on a combined $248.5bn (£190bn) fortune. The Institute for Policy Studies said the growing gap between rich and poor had created a “moral crisis”.
The size of the fortune of a few really rich people says absolutely nothing about the mechanics of the stock market. Stock markets have been around for centuries, how come the "pyramid scheme" hasn't collapsed yet?
Back to my point, there is a wealth of information out there you can read. I'd suggest you start doing so:
The reason is that at some point every company needs to "raise money". To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock. A company can borrow by taking a loan from a bank or by issuing bonds.
Exactly as I said. You might want to actually start learning a bit about finance.
Oh please, if that's what you actually think then I was right about you not understanding the stock market. What I just described is textbook stuff going back centuries.
Companies issue stock to raise money for various corporate operations. People who buy those stocks then become part owners of the company. If you don't know that you really truly know nothing about stocks and the stock market.
You're conflating the IPO ( which works like you describe) with the subsequent trade in that same stock. If I buy 100 shares of existing Apple stock, Apple doesn't see a red penny. I could be buying stock for dividends, but typically I'm buying in the hope that the stock will climb. And stock climbs not on a company's actual performance, but on expectations. So executives will be more geared towards the expectations market than the real one.
Well technically, I suppose you're right, I should have added a #4 to my second-to-last paragraph. Something like, 4) people making/losing money off of selling mature company's stock.
But the results of that are the same as what I described in the last paragraph - that is, "selling the stock at a profit ... In many cases they undoubtedly just roll the profits back into more stock. But other times they actually use the money to buy stuff - a new car, a new sofa, pay off debts, etc. All of those are good for the economy."
Performance helps shape expectations. If a company is performing really bad, investors aren't going to have very good expectations for it.
Quote:
Originally Posted by James Bond 007
I'm not sure you really understand what the stock market does and how it operates.
Let's say you start Company X. After some number of years of running your company on revenue alone your expansion needs are greater than your revenue can provide. So you sell stock to the public to raise money. You use that money to build a new factory, hire a bunch of new people, build or rent some offices to house those people, make improvements to your company's infrastructure, etc. All of that helps the economy. In turn, the people who bought your stock have part ownership of the company. If the public perceives the value of the company going up, they will bid up the price of the stock. If they perceive the value of the company going down, they will bid down the price of the stock.
After a company matures they typically can raise enough revenue to meet their needs, also in part because they aren't growing as fast as they used to. So they don't need all that extra cash anyway. It is also at this point where the price of the company's stock tends to meander in a sideways direction.
But it is also at that point where the company starts to pay out dividends (which come out of their profits). If the price of a stock has gone nowhere for 5 years, but the company has been paying steady dividends, it's still worth it to hold the stock. You get a little stipend every quarter.
So, either we have: 1) younger company's stock price goes up, 2) younger company's stock price goes down, or 3) mature company paying dividends.
In cases 1 and 3 the owners of the stock are making money, either from selling the stock at a profit, or receiving a quarterly dividend. The question I think you're not addressing is what stock owners do with that money they're earning. In many cases they undoubtedly just roll the profits back into more stock. But other times they actually use the money to buy stuff - a new car, a new sofa, pay off debts, etc. All of those are good for the economy.
Also, if you happen to be buying a new issue of Apple stock, then yes, the company does see that money. But yes, those are the minority of cases in mature companies.
Obama signed legislation to the effect Amazon is subsidized by the Federal Government, to crash small business.(Back when they thought Hillary would continue the ruin of America)
LOL ,typical GOP,it's ok for WalMart but not Amazon.
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