General Discussion

MineralMan

(149,655 posts)

6. It can be a scam or not, depending on many factors.

Mon Mar 11, 2013, 11:18 AM

Mar 2013

It is a capital equities market. Legitimate companies issue stock to fund whatever they need to be funded. Investors buy those stocks in hopes that the company will do well, the stock prices will rise, dividends will be paid, and they'll benefit from it.

That said, the stock market is played by stock traders who deal in large volumes of stock, working small incremental changes in stock value to earn a profit. That is mainly a short-term thing. Over long periods of time, the stock market pretty accurately reflects actual value of the individual equities.

A guy can gamble on the stock market, but an individual will probably not benefit by doing so. However, individuals who carefully assess what stocks they buy to hold for the long term can do pretty well over the long haul. I know that I wish that my professional ethics had allowed me to buy Microsoft stock in the 1980s. However, since I reviewed software products, I couldn't ethically invest in software company stocks.

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True or False - The Stock Market is a Scam [View all] el_bryanto Mar 2013 OP

It is easy graham4anything Mar 2013 #1

Except for those of us who don't fit into your tidy little boxes magellan Mar 2013 #2

I agree el_bryanto Mar 2013 #3

there are 2 sides of the street. graham4anything Mar 2013 #16

Save your breath magellan Mar 2013 #20

Neither will the Nader and the rand Paul/David Duke lovers ever admit what they did in 2000 graham4anything Mar 2013 #22

This was a thread asking a simple question about the stock market magellan Mar 2013 #24

you are either with us hfojvt Mar 2013 #30

Hey you cheerleaders! magellan Mar 2013 #34

" hey Jonny what are you rebelling about ?" olddots Mar 2013 #32

"I never heard of a lottery winner refusing the $1million dollar prize" bluedigger Mar 2013 #37

No. graham4anything Mar 2013 #40

Then don't conflate them. n/t bluedigger Mar 2013 #42

One could just as easily say-no one would refuse to have one share stock go up to 100 shares graham4anything Mar 2013 #43

You're certainly right about that. 1-Old-Man Mar 2013 #12

A vote for Nader is a vote for Jeb Bush in 2016 graham4anything Mar 2013 #18

Why are you obsessed by Nader? former9thward Mar 2013 #29

Because he is a prototype him that Jeb is going to exploit with Rand/Duke graham4anything Mar 2013 #36

The Stock Market is no more a scam than a Las Vegas Cassino... Agnosticsherbet Mar 2013 #4

One of the first things I learned about investing in stocks is that if you regard it as gambling... slackmaster Mar 2013 #5

If you know how to play, a good game of Poker isn't gambling... Agnosticsherbet Mar 2013 #9

The Madoffs Were Offering Far More Than 5% a Year... KharmaTrain Mar 2013 #13

It can be a scam or not, depending on many factors. MineralMan Mar 2013 #6

Very nice description of how it works for people who pay attention, but one slight correction 1-Old-Man Mar 2013 #15

Thanks. I do understand the difference, of course. MineralMan Mar 2013 #17

it doesn't have to be long term though hfojvt Mar 2013 #35

I said "Scam". Arctic Dave Mar 2013 #7

I'm gonna go with "somewhat true" WhaTHellsgoingonhere Mar 2013 #8

It's a sponge for unconsumed capital. It's money chasing money instead of buying work Bucky Mar 2013 #10

The derivative-market is worth more money than exists in the whole world. DetlefK Mar 2013 #11

Somewhat false. denverbill Mar 2013 #14

Totally agree IphengeniaBlumgarten Mar 2013 #19

I was going to say completely false, but there are some sleezy actors in the stock market as well. denverbill Mar 2013 #25

I fired my broker 20 years ago. Since then... aristocles Mar 2013 #28

As it exists today, it is a scam. In its early days it was a useful organization that grew out Egalitarian Thug Mar 2013 #21

I always thought it was a route for companies to raise capital, Nye Bevan Mar 2013 #23

It's not a scam. dawg Mar 2013 #26

The stock market serves a purpose to capitalize companies... SidDithers Mar 2013 #27

"Some will rob you with a six-gun, some with a fountain pen." Woody Guthrie Tierra_y_Libertad Mar 2013 #31

So is the market like cocaine ? olddots Mar 2013 #33

Insider trading is a scam. moondust Mar 2013 #38

What if you had asked...? IphengeniaBlumgarten Mar 2013 #39

Yep - I can't disagree with this assessment el_bryanto Mar 2013 #47

Scam? Maybe not. But an unequal and unfair market? At least at times, certainly. HereSince1628 Mar 2013 #41

I like stocks that consistently pay dividends madville Mar 2013 #44

it's a casino now. pansypoo53219 Mar 2013 #45

DOW index is bullshit! No adjustment for inflation. L0oniX Mar 2013 #46