Should Stock the Public Stock Market be Considered an Investment?

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Most--though not all--definitions of investment have the idea that something of value is given over to some enterprise by the investor, with the investor then sharing in the success or failure of the enterprise.refhttp://www.google.com/search?q=define%3Ainvestmentie=utf-8oe=utf-8aq=trls=org.mozilla:en-US:official/ref That's why I don't understand the stock market.

Most people would say that it's appropriate to say that buying 100 shares Apple is an investment in Apple. In-so-far that if Apple does well, I can expect (though am not guaranteed) that my stock will do well, and I will thus benefit, this makes sense. The problem is that Apple gets none of my money.ref group=notesApple may benefit to the extent that the company holds it's own stock, but such ancillary benefit is not what people are talking about when they talk about investing. It is acknowledged, but deemed immaterial to the current discussion./ref Investors invoke the classic understanding of investment when they talk about what they do, but very, very few investors do classical investment. They speculate derivatives.

After the initial offering, all public stock is a derivative. It's performance is detached from the company because the transactions that take place have no direct bearing on the company. All the effects are the result of changing confidence, reading the market, etc. In other words, the all the effects are derivative, and therefore, all non IPO stock is a derivative investment.

A derivative investment is not a classical investment because the investor does not give their money to the enterprise.

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