Comments on: Investment Success 2 of 3 http://www.inspiration-junction.com/2009/03/24/investment-success-2-of-3/ Inspire You To Success Fri, 05 Mar 2010 02:01:56 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Sensei Michael http://www.inspiration-junction.com/2009/03/24/investment-success-2-of-3/comment-page-1/#comment-5 Sensei Michael Thu, 26 Mar 2009 11:59:28 +0000 http://www.inspiration-junction.com/?p=84#comment-5 <i>As an investor, you may also make money on the difference between buy and sell. The difference is there is an value add elements to that. Say you invest into a listed company. That money is used to grow the company, research new products, expansion etc. All these actually add values to humanity and society.</i> I need to correct one error here. When you invest into a listed company, the money is used to grow the company, etc, *only* if you invest directly pre-IPO, if you buy during an IPO, or if it is a Rights issue by the company. When you invest by buying from the stock market, it is also an instance of money changing hands, without value being added to the company. As an investor, you may also make money on the difference between buy and sell. The difference is there is an value add elements to that. Say you invest into a listed company. That money is used to grow the company, research new products, expansion etc. All these actually add values to humanity and society.

I need to correct one error here. When you invest into a listed company, the money is used to grow the company, etc, *only* if you invest directly pre-IPO, if you buy during an IPO, or if it is a Rights issue by the company. When you invest by buying from the stock market, it is also an instance of money changing hands, without value being added to the company.

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