Why buy stock,if someone else will lose?

Question

Is of interest to let people know that making money in the stock market is just taking somebody else's money, thanks to speculators and insiders who manipulate the stock very much like raising prices for rice while rice is kept out of the market then dumped to lower prices to acumulate more rice so it could be sold later at higher prices, is a sin. ....just like stock going cheap under the manipulation of big sharks then buy it a low prices then raise it to pocket the gains while millions of uninformed investors kill themselves after losing their retirment savings.So why buy stock? why not make it illegal?. get rich while other goes poor!.

Answer 1

Don't quite understand your question.  When your are buying a stock, you are buying fractional ownership in that corporation.  As an owner, you share in the company's performance through distribution of the company's income, dividends, and appreciation (or depreciation) in the value.  Short term traders can influence company values, but long term a well run profitable company can be a good investment.  Commodities are another story and you make a good point for additional oversight for traders in necessities like food and energy.

Answer 2

I think you perhaps need to take some basic economics classes.  You don't seem to understand the capitalistic and corporate system very well if you really think all purchase of all stock should be made illegal.  Unless you are advocating Communism, which has been tried but has it's own problems.

Answer 3

the very nature of wealth creation is in one sense or another exploitative (and i don't mean this in a moral or ethical context, but purely economic). that is, to beat the average and rise above the mean, it is necessary that someone feel the impact of some financial course more than some other.

generally, the less money you have/make, the more of this impact you receive, whether you know it or not. (i.e., you are disadvantaged by circumstance)

and that goes beyond the stock market; the stock market is just a microcosm of the way the global economy works, with myriad financial institutions playing poker with their respective economy's fundamentals.

many times, this is justified by adding the variable of TIME: that is, you lose now so someone can win, but you will win later, when someone knew decides to put their chips on the line and lose. this is why we value the rigidity of long-term investing and shun short term trading.

whatever you believe, know that wealth creation is Darwinian in nature and this is as good a world as your going to have. If you disagree with it, find a communist country to live in.

wealth creation, while it may teeter on ethical boundaries, allows for progress, space travel, technology, etc.

equality allows for everyone to get an equal share of f***s, no progress guaranteed.

learn to play the game, or pay the price.

Answer 4

I think what you're asking is why buy a stock if someone else is letting that stock go at a cheaper price.  Firstly, you are correct in the fact that when you buy a share of a stock, you are buying it from someone else who has sold that stock.  But it doesn't mean that that person has lost their entire savings, just cause you bought it lower than it was last week or something like that.  For every buyer there is a seller.  There may have been reasons for that person to sell that stock, but it doesn't have to have been for financial ruin, maybe they needed the money to buy another stock that was performing better.  I've been buying and selling stocks for 8 years, you can't worry about every transaction that happens, you need only be concerned about your own..  Hope that helps.

Answer 5

a fool and his money is soon parted.