Posts Tagged ‘trading’

“A lot of people are under the assumption they can get whatever they want without trading something that they have.  And that’s just not the case…. Everything has a price.” -Jon Morrow

Cash Problem

Posted: October 25, 2015 in Money Matters
Tags: , , , , , , ,

“I’ve never heard anyone in the popular financial community say it.  All they talk about is stock returns, 401(k)s, or some new trading program.  Another camp will tell you to save more by spending less money on coffee or cutting out your trips to restaurants.  This is—if you’ll excuse the correct word—bullshit.

The way to solve the problem you have is by generating extra cash.  Others won’t tell you this because (a) there’s no benefit to them in saying it and (b) most of them have no idea about how to actually do this.” -Mark Ford

Perhaps others are unaware, as was I, that after the initial public offering (IPO) of a company, that company receives no capital benefits from the trading that occurs on Wall Street.  Wall Street is basically a “financial product” used to help generate profit for these entities, in which they provide a “return” to the investor (or stock purchaser).  Mutual Funds are one such financial product.

“Actual wealth, or capital, is transferred to a corporation at the time of the initial public offering of the stock, or IPO.  This, however, is a one-time event.  For all the daily trading these exchanges perform, they provide no capital whatsoever for American industry.” -L. Carlos Lara     LMR     May 2013