that's funny hahahaa
Wall Street is a huge ponzi scheme Cavey. Allows the rich to gamble on companies performance. A company like Facebook goes public and has an initial price offering.. or a price for the stocks. Then when it goes public buyers get their shares and they have to pay the price of the demand of the stock. If it goes up demand is high.. if it goes down money is lost and shows demand is low.
People that bought facebook at $38 dollars a share and now is $19 a share is a huge mount of money to lose. Talking about billions of dollars lost. He is considering placing a bet on Facebook as he is getting confidence that Facebooks stock will go up there winning that hand and cash in on Facebook profits. If facebook keeps going down which I am hoping then he will lose the difference from the price now to then. If it goes up he makes money from the price now to were it goes to. If you love the gamble.... this is your game.
I think it is wrong... I don't like it and it's cancer in our system... much like the FEDS.
You know what happens to a company that goes public? They constantly have to keep growing and they have to make increasing amounts of money or they can go under or get bought out as their stock price keep dropping. They cant just stay the same size or they will fail.
This is why you see such large companies here in the US like Walmart that has killed small business and killed many jobs. Large business promote profound amounts of greed. This is why Wars are popular here. Big money to be made in Wars.
Some errors:
- "Wall Street is a huge ponzi scheme."
Wrong: a ponzi scheme is a fraud destined to collapse; in the past 100 years, the stock market has increased in value about 7,000 percent.
- "It's a cancer in our system."
Wrong: It IS our system; it's called free enterprise - it's what makes the country work.
- A company that goes public has to "keep growing... They can't just tay the same size or they will fail."
Wrong: Shareholders like profits to keep growing and profits can grow even as a company stays the same size due to increased sales, higher profit margins, etc.