Forum Archive Index - July 2001

["Jeremy" <jeremy@electrosilk.net>]

From: "Phil Eriksen" <phil@acepay.co.nz>

> Investment in the sharemarket is not gambling.  Over the long term, an
> "average" return in the sharemarket WILL increase your wealth.  While the
> returns in individual companies are wildly different,

Therein lies the crux of the matter.  Your term 'investment in the
sharemarket'  The sharemarket produces no net value.  It is a glorified
gambling hall, no less, no more.

If you said, 'investment in company X'  where your investment is to provide
funds to the company to allow it to create value from the works it does,
then it is an investment.

Buying and selling shares on the sharemarket does nothing to help an
individual company create value (asides from the Stock Exchange company).

Direct investment, that is providing funds to a company that it can use to
create value, can be considered ethical.  Buying and selling on an open
stock market where your money simply goes to another speculator without
helping the company doesn't seem ethical.


Jeremy


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.