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Re: See US politics From another angle .
A myth about wealth
question, "I don't think your equation works very well at all.
It is like owning a house. If you do some landscaping and renovations, and keep up with repairs, your house will likely appreciate in value over time. This does not mean you have benefited at the expense of anyone else. Investing in stocks works the same way. The company reinvests most of its profits in expansion and improvements; if they do this wisely then the company will grow in value. It is not the zero sum game that you suggest it is."
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Answer: You still haven't told us how the wealth created in winners' gain. The sample you given is a misleading of company's activity with stock trading. A company of course must work hard to earn a profit so it can distribute dividend to investors. They plant, produce, or do a house repair as you said. It doesn't related to stock trading. The wealth company created was used to distribute dividend. When you said company reinvested its profit in business, that means company diverted the dividend investor deserved to re-investment. You know there had been a period that Microsoft holding the profit and hadn't distribute the dividends to the stock holders. That is typical story fits your "company grow in value". But it belongs to the category of dividend distribution. I have said the dividend is the same thing like interest paid by bank to its investors. There is totally nothing related to the profit gain in stock trading. If you want to know where the profit of winners came from, go to my eqation. It is from the losers and potential losers. Or you show me where it came from.
My equation: Profit( stock winners gain)+ Capital gain(Company issued stock) = Loss(losers) + Potential loss (One who hold the stock)
Or to satisfy you: Profit(stock winners gain) + Capital gain (Company issued stock) + Capital gain 2 (Company re-invest with money originally should be used as dividend) = Loss (losers) + Potential loss (One who hold the stock) + Loss (Investor loss of dividend)
That Capital gain (company re-investment) is always equal to Investors' loss of dividend. It should belong to the category of dividend. (I omitted it because it is similare to interest)
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If Feds call you and defame my message, it is a tactic of intimidation. They don't want people know the fact.
It also proves what I wrote are truth. They are afraid of it.
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