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rhett o rick

(55,981 posts)

27. When you buy a share of a company from another individual you are not "investing" in the company.

Sat Oct 25, 2014, 12:37 PM

Oct 2014

The company does not see a dime of your money. The person you bought it from gets the money. The value of the stock is based on it's popularity. That popularity can be influenced by the performance of the company but it can also be influenced by a lot of other things. For example, a number of years ago it was discovered that Wall Street Journal advisers were influencing stock prices and cashing in. They would tell people that they recommended a certain stock then they would buy a significant quantity which made the price go up. When the public saw this, they took the advice and drove the price up further. Then the advisers would cash out at the higher price. Of course the price would return to normal and those that "invested" on the way up, lost value. My point is that the value of the stock increase had nothing to do with the performance of the company. CEO's have been found manipulating the value of their company stock via business practices and cashing in via their stock options.

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Americans are withdrawing their 401k money early - experts are calling it "a flood" [View all] Liberal_in_LA Oct 2014 OP

My wife and I have pulled some money out Dirty Socialist Oct 2014 #1

I drained mine a couple years ago. DCBob Oct 2014 #2

My father retired from GE 25 years ago. Pension, medical. The works. Lochloosa Oct 2014 #3

I know of GE workers in Cincinnati Dirty Socialist Oct 2014 #4

About the only workers who retain Defined Benefit Plans Yupster Oct 2014 #5

I have a pension and my wife too because I work for a railroad. I consider neverforget Oct 2014 #11

I have it, but I lost the medical. It was touch and go there for a while, with quarterly scare mail freshwest Oct 2014 #18

My Dad died 4 days before his retirement date from GE KentuckyWoman Oct 2014 #41

Your father should have had more life insurance Live and Learn Oct 2014 #43

It is a gauge of continued souring economy. maced666 Oct 2014 #6

Daughter lost half justgamma Oct 2014 #7

Who could have possibly known? BrotherIvan Oct 2014 #8

With due respect, if you have your money "invested" in Wall Street, and don't recognize that rhett o rick Oct 2014 #9

I must respectfully disagree with you here, at least KingCharlemagne Oct 2014 #12

Buffett is a harsh critic of the "gambling" side of the market Algernon Moncrieff Oct 2014 #14

Buffett has also stated that his preferred time period for holding a stock is 'forever'. I've KingCharlemagne Oct 2014 #15

I should have said "speculation" in lieu of gambling. Choice of words is important. No one would rhett o rick Oct 2014 #22

Fair enough. I will say again that workers need to make sure their choices about KingCharlemagne Oct 2014 #26

Your screen name is an odd choice for a democratic socialist. rhett o rick Oct 2014 #29

Ha-ha. Touche. I meant to sign up as "KidCharlemagne" in homage to the KingCharlemagne Oct 2014 #31

If you typed "king" in lieu of "kid", it's a wonder you managed to get Charlemagne correct. rhett o rick Oct 2014 #36

I'm getting to be an old fart, getting absent-minded in my dotage. It's a wonder I can KingCharlemagne Oct 2014 #37

When you put in only a few hundred to a few thousand dollars a year into a 401(K), JDPriestly Oct 2014 #19

Even if you put 100% of your contributions annually into a Money Market account? That's KingCharlemagne Oct 2014 #24

What's your money marke account earning? spinbaby Oct 2014 #34

You'll get no argument from me. The money market account is perfect when KingCharlemagne Oct 2014 #35

What is investing? Some say it's purchasing something with the hope of rhett o rick Oct 2014 #20

When one buys a share of stock in a publicly-traded company, one is becoming KingCharlemagne Oct 2014 #21

When you buy a share of a company from another individual you are not "investing" in the company. rhett o rick Oct 2014 #27

what you describe is known as a ponzi scheme. n/t PowerToThePeople Oct 2014 #39

I think the Stock Market operates as a pyramid scheme with frequent "adjustments" which is code for rhett o rick Oct 2014 #40

ive never taken anything out TheFarseer Oct 2014 #10

I'm 49, and I figure to be working until I'm 75 Algernon Moncrieff Oct 2014 #13

I'd like to take it out of the 401K before the next crash - LiberalElite Oct 2014 #16

My husband and I have had to pull some out, and I wouldn't be surprised if we have to pull more out. liberal_at_heart Oct 2014 #17

Spent mine years ago... Wounded Bear Oct 2014 #23

I have around $3000 left. randome Oct 2014 #25

You know what? It's OUR money. Avalux Oct 2014 #28

You can not be "forced" to pull it out by an employer. A HERETIC I AM Oct 2014 #33

We can loan ourselves money from ours. ileus Oct 2014 #30

If you are a few years short of collecting SS hobbit709 Oct 2014 #32

Better they take their money early than allow the criminals to loot them n/t malaise Oct 2014 #38

Bingo! greatlaurel Oct 2014 #42