Stock - The Corporate Currency

Imagine someone is trying to convince you to buy some useless electronic database records. Your only hope to getting your money back, and possibly making a profit, is if you can convince someone else to give you money for those same records. This is effectively the case when you purchase non-dividend paying stock. But stock makes you part owner of a company, right? If you want to believe that ownership means not having rights to or control of any assets, that's up to you. Stock is essentially a corporate currency that is not backed by anything with value. It is amazing that this form of investment continues to look like a good idea to so many people. It is not so surprising when these already useless records lose "value" during an economic recession or stock market crash.

 

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