Sunday, October 12, 2008

Trillions Disappear - But Where Did Money Go?

If the company is still in business, then their stock still has some "real" value. But if the company goes bust, then their stock is indeed worthless and the money is really gone.

The whole stock market could be trading "baseball" cards and I think people would understand the risk they are taking by buying stock. It's only worth what the company pays in dividends (if anything) or what someone else is willing to pay for it. Like a baseball card is only worth whatever someone is willing to pay for it, it has not real value itself.

Stocks do have some real values, and I think ALL stocks should pay dividends. If owning stock is ownership in the company, then you should get a part of the profits the company makes. But I don't think it really works like that anymore, if it ever did.

FOXNews.com - Trillions Disappear in Stock Market, but Where Did Money Go? - Local News | News Articles | National News | US News

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