Post

Fermion
@weylfermion.bsky.social

stocks, like bonds, are a way to create liquidity technically liquidity isn't "value", per se, but it is important it's like forming a hole and an electron in a semiconductor, the net charge stays the same, but an electron in the conduction band and hole in the valence band can move freely

arcanealchemist.bsky.social
@arcanealchemist.bsky.social

you missed the point. stock /trading/ is not work. it does not create value. stocks are a way to entice people to invest, which yes, is a way to generate liquidity. but it isnt the only way. stock traders, people who dont intend to own the stock long term, and are uninterested in dividends 1/2

Fermion
@weylfermion.bsky.social

idk i think retail trading is gambling but HFT, quant, and professional traders definitely do generate SOME sort of value, at least for their company, otherwise it wouldn't be so competitive or highly paid

arcanealchemist.bsky.social
@arcanealchemist.bsky.social

only intend to own the stock in the short term. they intend to sell it to another person for more money, who intends to sell it to the next person for more money. the share in the profits is irrelevant to them, and the company sees nothing from these trades. the stock has already been purchased.

Keegs
@littlekeegs.bsky.social

This is stated too strongly: the point of stock trading is to better valuate stocks, to improve allocation of money to companies. There are lots of reasons this doesn't work well, but there are real benefits too