What's the point of stocks? Why do we need them? If stocks were to disappear overnight, how would the world change? What purpose do they serve, other than a speculative asset to be speculated upon and to make money off of the next idiot who buys into your shilling of the speculative asset?
Why does a company need stocks? They can just sell their goods and services. At one point did we as a society, decide that "stocks" should be a thing?
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Fuck off brainlet
Omfg the state of this place. Do you also have to remember to breathe you fucking retard?
when a company goes public, the shareholders are the owners of the company.
Did you vote for the opening of the stock market? No? Then fuck off. You are just a pawn in the game to be used and exract resources from. you do not even realize it. You never question anything, you just follow what everyone else is doing because "they are making money". You never challenge or think deeply about what it is you are actually doing. You are an NPC
Imagine posting this unironically on a business and finance board. If you have any spec of intelligence you're gonna do just fine in the crypto and stock markets.
Stocks are exactly like shitcoins, yeah. This is why in the future all stocks are going to be crypto.
>hurr durr businesses did not exist prior to joint-stock companies/east india
"Shareholding" should not be a thing. A business should be an individual liability, the risk should not be disbursed between random jacks and joes who want to cash in on your business and do nothing but buy some "shares', ie non-existent pieces of paper. If you cant run your business with your own money invested, then maybe you shouldnt have started that company to begin with.
Adam smith said it best
>The directors of such [joint-stock] companies, however, being the managers rather of other people's money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own.... Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company.
All it does it promote inefficieny. "Shareholding" should be outlawed
You're a fucking idiot bro. Nobody is arguing that a company must be publicly traded for it to exist.
are you against venture capital too?
Then why have publically traded shares?
>More importantly, the East India Company demonstrated inherent flaws in the corporate form. The division between owners and managers in a joint-stock company, and the limited legal liability this division was based on guaranteed that stockholders would be apathetic about a company's activities as long as the company continued to be profitable. Just as problematic, the laws of agency upon which the corporate form was based allowed for boards of directors to be so autonomous from and unconstrained by stockholder wishes that directors became negligent and ultimately self-interested in the management of the corporation
society didn't have to choose them as a thing. It is a way for businesses to raise capital and for people to invest through buying affordably priced products. That's all.
please god let this meme die
>business board
>someone asks a genuine business related question because they don’t know the answer
>YOURE STUPID
>FUCK OFF
>YOURE A RETARD
he went from asking the question to asserting his opinion on how large businesses should operate.
That's different. There is no speculative exchange market for someone who privately invests in a business.
You can throw money at a company and hope it gives you a return, but dont expect that company to give a fuck about you or how you want the money to be spent. All expectations are lost once you fund the venture. You should not use your ownership of the company as a speculative asset to shill pump and dump on the economy, causing negative externalities and disastrous market cycles
>buy stock to invest in the company
>never get dividends
>hope someone pays more and buys it from me
kinda sounds like a scam
I'd recommend reading up on venture capital because you seem very uninformed.
you cant compare the two. VC startups have high rates of failure. People throw millions and watch their investment go to 0. This makes sense, you buy something and you are harboring nearly 100% of the risk
Wheras with stocks, you can just buy some, and you can "blend in" to the fog of speculation, and sell your shares at a higher price to some other chump by purely taking advantage of the market volatility and confusion/noise. Literally no fundamentals are included, wheras venture capital depends ENTIRELY on fundamentals.
Idk the stocks and houses are way overpriced. We need a reset where all prices drop 80% in every asset class.
It is thus, that companies should not be working for the benefit of "shareholders", who are in reality mindless speculators who have no interests other than increasing their own personal profit, using the volatility and confusion of others. Firms should work for the benefit of STAKEholders, ie people who are affected or otherwise involved in the companies activities.
people buy a bunch of stupid shit for a bunch of different reasons. The fact of the matter is, companies sell equity to raise capital and people buy that equity to be profit participants. That's the stock market. It's not that complicated. Someone gladly wasting their money on something that they can easily be informed about is not being scammed. No one is lying to them. No one is actively hiding information. They're just being retarded.
whenever i'm feeling dumb, i'll make sure to come back to this post. thank you OP
>negative externalities dont exist
>we should have boom and bust cycles, because MUH EQUITY when we can easily prevent it
you know by "reset" you mean half the planet dying.
and you know, by "half" I mean that it's unlikely you'll have any say on which half you're included in.
capitalism is a trading game that follows the pareto distribution, learn to accept your fate or accept that you will likely die fighting it.
All you do when you try to prevent boom and bust cycles is make the cycles even bigger...like ummm right now in the stock market
false.
china has proactive government spending when other sectors are experiencing pullbacks.
when private ventures start to flop and employment starts to dwindle, the ccp spends money on infrastructure and other projects that are difficult to organize on a micro economic level.
when the economy is going well, they dial it back and delay their projects until the productive capacity isn't carrying anymore.
>Imagine posting this unironically on a business and finance board.
as opposed to the rest of the time when only advanced business topics are discussed on this shit board.
OP might be a faggot, but you are worse than him. I'd rather see more brainlet questions like OPs that sometimes could spark actual discussions than see another shitcoin of the month or shitcoin of the year being discussed here again and again.
I guess time will tell who is right. Debt levels keep going up...interest rates are going to have to go up sometime. Debt levels will increase. This game wont end well. I dont see how you think otherwise.
let me guess, preventing it means nationalizing banks and industries, prohibiting interest, giving loans only through the government and only from funds raised by compulsory taxation instead of voluntary deposits, and the creation of a wide range of social safety nets that take the place of a marketplace with various products that serve those purposes.
I've heard it before.
maybe you still don't understand and maybe i misspoke.
it's not a matter of interest rates and debt.
I suppose boom and bust cycles are inevitable, and what I described even shows them happening under some sort of communism.
The thing is that it is a political decision to allow boom and bust cycles to impact citizens lives.
America and other central bank ran countries have decided to have a retroactive measure to deleverage an economy.
China's proactive measures simply means that the federal government has learned to lean out and lean into the boom/bust cycle.
you are seriously a bunch of NPCs
he is asking a legit question
No. just literally get rid of the stock market. getting rid of the FED would help. bringing back the greenback would help. also
Stocks are a ponzi scheme.
>buy an intangible token representing a share of ownership in a company
>you can't do jack shit in reality unless you are a majority shareholder
>hope to sell your shit tier useless token to the next chump for a higher price
PONZI
O
N
Z
I
>mfw people buy stocks thinking they will "just appreciate bro"
>not realizing its just a haven for people to put money to beat inflation
>not realizing companies are just doing buy backs to pump their stock
>not realizing government just gave them a shitload of cheap money for 10 years to prop their prices
This is either bait or you have absolutely zero understanding of finance. If it’s not bait, read about public offerings and stocks on investopedia.
>what are good fundamentals
>what are dividends
>what is value investing
everything is ponzi these days to you retards, huh
Proxy vote rigging / institutional investors / "opaque" ETF funds -- killed any residual shareholders' activism. Shareholding is a meme now.
Truth is: unless you have information asymmetry about company governance and long macro sectoral trends company is playing into, equity is a gamble if the company doesn't pay predictable dividends. Earning matter less, Earning Quality matters a bit more,but they all can be unstable. Moreover a company at its growing stage can't pay dividends and hence harder to value.
Future Cash-Flows and Voting / Ownership rights are two reasons of holding equity. Second one i is "gone for ever" for retail investors and first one depend on growth-stage.
Summary: Either own researched biotechs ("make it or break it") or dividend-playing bluechip stocks or in 20%-80% splits. Holding nano/small caps elsewhere doesn't make sense for retail investors.
t. 10 Years in stock market as retail investor.
As discussed in recent threads, value investing a "normie" level meme perpetuated by institutional investors like WB by instilling an aspirational ego in the same way American Dream has been payed through muh-Meritocracy.
Unless you are billionaire retail investing is a loosing game. Real money is made in Private Equity / M & A / LOB / Venture Capital. 5x-10x and in some cases 20x-100x are common. For some fucked up reason “accredited investors” (this status is based on existing wealth, not on a exam testing investing knowledge) are not invited.
Most of the money WB is via private equity except in few cases. He buys undervalue companies, improve efficiencies and get preferred dividends or exits. This is institutional investing at a highest level. Just like University is a meme to keep middle class debt-slave and wage-slave, Index/value investing is a meme unless applied at institutional level with big money. Besides all those index funds shareholding companies re killing shareholder-activism again unless you are a billionaire.
So be refpilled, learn value investment and ratios, but be assured that you are playing a game with a tiny tiny capital and informational asymmetry which institutional investors like Buffet has.
Invest your time in a business that would generate 20-30% yield and forces you to learn a real skill even if it fails. Also invest your time with your family and friends and pets. Time is most important currency you have. And yes invest some in some selected crypto, if you are not “accredited”
are dividends actually worthwhile in most stocks?
Only when the cash-flow stream is predictable, increasing over many years, company has some sort of defensible competitive advantage or moats.
You've got Champions / Aristocrates for that.
Bümp for other views and thoughts
They're warm and it's nice to have a layer between your feet and the shoes or the floor.
stocks represent equity in a company, big businesses cant go to a bank and request 500 million for a huge project, but they can go public and sell shares of their business to prospective investors
Unfortunately most businesses forgo buying back shares as they appreciate, overtime giving the company less of an authoritative share in its decision making process although this is fairly rare as both parties are interested in the continued success of the company
>Did you vote for the opening of the stock market
Thanks for outing all these brainlets OP, doing God's work.
This. That's why this board is dead.
Debt based economics. A company raises funds by going public and selling shares. The first person to buy the stock is giving the company a loan so that it can expand faster/bigger. The dividends are interest on that loan. When you're buying a stock you're buying the rights to those interest payments. You're buying a piece of the company's debts, and since ownership of debts is basically owning the fate of the company, you're also buying a piece of the company itself.
Its because companies needed a ponzi sceme to pay for the office furniture that NPCs use, else they'd for on strike after reading their facebook
>Why does a company need stocks? They can just sell their goods and services. At one point did we as a society, decide that "stocks" should be a thing?