I understand the operation of the stock market for the most part and I get how wealth is gained by speculative trading but I am not a day trader or stock market veteran by any stretch of the imagination. The popular conception of the stock market is (especially in Hollywood) you can either day trade with massive volume and slight shifts will make or break your company's profit margins, or you bought an underdog stock before it got discovered and held on to it and one day you are rich, a la Forrest Gump and Apple. This leads to the question...
As an individual, if you buy significant shares of an upstart that, over a few years to a decade, between splits and increased value, becomes valuable enough to make you rich, how do you actually become rich?
I am not talking wealthy where you're diversified and one spike won't make or break you... I mean new money rich. If your stock is that valuable, you either own enough that selling it all off will tank the value how do you become rich? Do you get enough off of dividends, or does the company just make a private offer with you, as a newly high profile investor, to gain back control of those shares without a market effect? Or maybe the finance wizards of theoretical money allow somebody out there to lend money based on "net worth" according to stock holdings so people can borrow against a very volatile, unbacked, non currency...
[edit] I am a capitalist who enjoys the system don't get me wrong. I'm just genuinely curious about the mechanics because if it was impossible to get Rich off of the stock market it wouldn't be a trope but it seems illogical that an individual could.
Submitted January 19, 2017 at 12:19AM by BadGeppetto http://ift.tt/2jzKDQx
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