Quote:
Originally Posted by DianeM
I strongly disagree with you. Businesses do have employees too.
|
You can disagree all you want but it doesn't change the facts.
When you buy stock you're basically buying part ownership in that company. The thing is at these prices the company isn't selling shares. The shares you want to buy are coming from other investors who are selling their part ownership in the company. The actual company gets no benefit. The only person that benefits is the person who sold the shares.. And you because you now have an equity stake in that company.
No product was sold. No store made a profit. No employee made a commission. The transaction only took place between you and the person/institution who is selling the shares.
You're not actually putting any money into the marketplace. If the stock price goes up you're actually going to have more money than you started with. Of course if the price goes down so does your investment.