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There’s a peculiar idea that buying stocks and shares is ‘investing’ though.
The only person who invests is the first person to buy stock in a company. The second-hand market is purely speculative, and its only productive value is in providing an out to the original investor…
slippers-
I had an idea that derivatives would come along to muddy the waters.
There are arguments to be made about the second hand market enabling the primary investment but I like my purist intent. I don't like derivatives in general though and they fall into my widening the definition of investment clause.
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its only productive value is in providing an out to the original investor
That's the whole point, though. If there was no secondary market for capital it would be extremely difficult for any company or venture to raise primary capital. It's got nothing to do with derivatives.
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The only person who invests is the first person to buy stock in a company. The second-hand market is purely speculative, and its only productive value is in providing an out to the original investor…
No.
Airhead
NickCJ
starfish&coffee
It's easy to make a statement like that but staking a bet doesn't alter the chances of a thing happening. Giving a company capital to work with might well alter their chances of success.
If you widen the definition of investment you do come closer to gambling but there's still a difference.