You are reading a single comment by @slippers and its replies.
Click here to read the full conversation.
-
I guess my quibble is more that we casually call it “investing”, rather than something else entirely. Not that it’s not useful, or anything like that.
slippers-
I think on most people’s definition of “investing” it is investing, though. And that kind of makes sense - from the ‘investor’s’ perspective, why should my activity have a different name if they buy the shares from one person as opposed to another? They’re still doing the same thing
-
Yeah, agree with andy above. In the US they have the Howey Test, which is as good a definition as any: "investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others."
andyfallsoff
NickCJ
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.