And, cost somebody else the same amount of money...while making money for the house out of the transaction. In other words, buyer and seller basically net out and house picks up some money.
Does it do anything for the country? I would submit that if most transactions are “gambling” motivated rather than “investment” oriented, you end up screwing up the market. For gamblers. And for gambling.
And one of the biggest gamblers is management, who might be tempted to go for short term gains and the heck with the future. In fact, that is one of the charges laid to Wall Street.
Back it off Wall Street and make it Bob’s Widget Factory. This morning it is owned by Ted and Nancy. At noon, they sell, to John and Alice. That afternoon to Carol and Joe.
Now, what kind of connection do the owners of Bob’s have to either the company or the management? How likely is management to feel they have a duty to the owners, when the owners are being switched in and out all the time.
How do you have meaningful stockholder’s meetings?
The result is you usually have a minority of owners who end up controlling the company and everybody else are transients.
parsy, who doubts this is good
Guy buys fishing reels for $10.00 from the manufacturer and sells them to fisherman for $10.20.
Every time he sells one he buys another from the manufacturer. He knows a lot of fishermen interested in buying the reel.
Manufacturer pays taxes, guy pays taxes, fisherman enjoys vacation. Everyone is happy.
yitbos