Stock Exchanges, an investment medium?
Used to be... To-day a stock exchange is more a "Gambling den" than an investment medium.
Return on investment, management quality, balance sheet analysis, market potential or penetration, new technologies or products, research and developments, all these no longer play the important role in the decision making processes of buying or selling a share.
The daily activities, fluctuations, up and or down movements of shares no longer reflect the value of a company in the investment fraternity but rather the greed or panic of operators in the Market.
In some countries the hype is so strong that even governments are getting worried.
Will a repeat of 1929 shake common sense back into people? Hardly.
When a hefty falls happens in one day, the stock exchange just closes its doors to avoid the run... like the run on the bank...
Return on investment, management quality, balance sheet analysis, market potential or penetration, new technologies or products, research and developments, all these no longer play the important role in the decision making processes of buying or selling a share.
The daily activities, fluctuations, up and or down movements of shares no longer reflect the value of a company in the investment fraternity but rather the greed or panic of operators in the Market.
In some countries the hype is so strong that even governments are getting worried.
Will a repeat of 1929 shake common sense back into people? Hardly.
When a hefty falls happens in one day, the stock exchange just closes its doors to avoid the run... like the run on the bank...
posted by Unknown | 7/10/2007 10:35:00 am
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