Stock Markets Exposed
Why do people take their money out of the stock market, then complain about the economy?
If people just left their money in the stock market, buisness wouldn't loose a ton of money, meaning business would survive, and people make money. Also, when something happens like 911, who decides, or what makes people take their money out? I mean, if people just leave their money in the stock market, the value of the shares can't go down. The reason the stock market is so bad, is because EVERYBODY freaks and takes their money out. Those choices are costing the business money, which then cant produce as much product.
Public Comments
- Well, so what you're saying is people should leave their money in a stock market while the value of their shares drop, just to support the economy in the long run? No-one wants to do that and I don't blame them. People are taxed for the upkeep of the country, they shouldn't have to invest further, and lose more money, to do so as well.
- you are right, i am sure you have put every penny in stocks. persuade your parents, friends, relatives, family friends etc to put all their money in shares. this way you will save economy.
- Its also a psychological factor that plays an important role. Sometimes when people have faith in the company/stock they don't pull out their money at such crucial times. Of course if a scam/fraud is revealed investors will want to pull out as soon as possible. In times of natural or man made disasters investors want to square up their position at that very time so as to not lose/drown any money.
- You have a bunch of thinking to do on the subject. The value of buying a "share" of a company is determined by it's ability to produce profits, to use my money to make more money for me. The less money they can make for me the less value it has to me. It is not based on the greater fool theory that I may be able to sell the stock for more to somebody that is a greater fool than I. Why would I want to own overpriced shares of a company that is making little money based on the price or even losing money? Think about it.
