INT6. 5 Popular Misconceptions Part 1

[arahant7]

If a company isnt paying any dividend, then isnt investing in that company's stock a zero sum game?

[savingandinvesting]

The dividend is one source of return for the investor - the other being the change in the share price. Many companies do not pay dividends and retain earnings to have more funds to reinvest in their business. Retaining earnings can increase the cash on the companies balance sheet which could be good for the share price, and for example tech companies that often retain earnings may be able to generate a lot of value through the reinvestment. Big topic - hope it helps - best regards, Michael.

[shakaama]

it seems to me that you were mixing: venture capital, ipo offerings and day traders all in the same bucket. that is to say, providing pre-IPO capital and ipo capital is direct investment in someone's idea. Or, even buying into a drop program. whereas day trading is a contract between you and another stock holder trying to sell you something at a profit. ultimately you only have tangental claim in interest in the company. the company doesn't directly benefit from your purchase.

[georgeurdea]

Great videos - very nice of you to take the time and put all of this together!

[salashaska223]

"the Stock Market is just like the lottery"

lol , I would never expect someone to say that...

[jcfbell3001]

"investment" does not exist anymore, unless you're talking about venture capital...there is only trading...

[MentengElites]

"investment" does not exist anymore, unless you're talking about venture capital...there is only trading...

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This statement has a lot of truthful content indeed!

Nowadays there are less people do real investing, most are 'speculating' in markets, those who hold securities for long time are less now, most are timing their way thru market, speculating rather than long-ing.

Yes I also agree that a true investment is those venture capital that invest in real business

[MarkDouglasC]

Nothing is more common in human activity than to justify your own greed. And god bless greed, by the way.

Its very easy to believe the BS that you should pay little or no tax -- but the other guy should pay high taxes.

Analyze this. I invest 500K in my education as a neurosurgeon, or my family's print business. You invest 500K in Chinse cell phone stock.

The guy who invest in CHina sincerely believes he shouldnt be taxed.

Tax all income tpyes the same. Let the market work.

[monkeyman000111]

fag (not the savings and investing guy)

[EurodanceStrong]

*scratches self at the end*

..lol

[salashaska223]

lol, seriously ... cause he explained it pretty clearly...