What determines value?
A source once told me that the stock market is like attending a
ballet. But the value isn't in what price you put on the performance,
but what the majority of the audience thought of it.
Share value dillution is another issue and a big problem. But a
bigger one is the sophistication happening in the equity markets
today, where huge blocks are trading, or crossing, without anyone
knowing party A was trying to dump so many shares. They often trade
in what are called dark pools. The process is meant to ultimately
protect your retirement funds, for one example, from a drop in share
price due to market impact. But now other sophisticated players --
Bloomberg for one -- have figured ways to mine these deep pools, for
a price. So these customers will have information that the average
investor doesn't have. It's another blow to the SEC's on-going
efforts to keep the markets a level playing field for Joe Six-Pack,
if you will.
Maureen
--- In AsburyPark@yahoogroups.com, "oakdorf" <[EMAIL PROTECTED]> wrote:
>
> --- In AsburyPark@yahoogroups.com, "oakdorf" <oakdorf@> wrote:
> >
> > What determines value?
> >
>
> another market problem..
>
> a guy like me goes and makes some moves to buy some GE (General
> Electric) for stability and now (as of this minute) a nice dividend
> based on stock price. I buy it at what I think is a great value
even
> taking into account GE financing arm and god only knows.
>
> Then, a few hours later, a guy named Warren Buffet must of heard
that
> I buy GE for all the right reasons, and he says shit, Dave must
know
> something. So he picks up the phone, calls Mrs. Buffet and gets her
> ok to move $3 BILLION into GE, getting a 10% dividend and all kinds
> of other goodies to protect, more or less his investment. Then GE
> makes his deal even nicer, allowing Mr. B to get their new stock
> offering(funny paper money a company is permitted to issue at will)
> at quite a bit less then, say a guy like me got to buy. Even though
> the news was public yesterday, the news news news didn't come til
> today.
>
> Large companies have the ability to destroy the average stockholder
> as will. They do this by issuing almost any form of collateral or
> perceived collateral.
>
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