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<p>[QUOTE="desertgem, post: 1530818, member: 15199"]If there are 100 million shares outstanding in a stock and you are long ( own) 100 shares, you do not own 1 millionth of the the company. You can't go in and start taking your shares' worth of paper, pencils, or even dirt. It belongs to the company. You are buying any future appreciation ( and any dividend) or loss of value of your 100 shares. If the stock doesn't pay a dividend, you generally can not realize any appreciated value for your shares unless you sell at a profit. </p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>So you are saying there is a future market for stock other than the stock market? If you have 100 shares IBM, where do you take it to short IBM without giving up the stock or borrowing more from you broker? You can use long term put options to "short" the stock without giving up the 100 shares, but you pay the same premium I would just going and buying the put options without owning any IBM stock, so the ownership of the stock along with put options establishes a straddle situation where you can profit from either direction movement, but it is far cheaper to do the same using call options and put options alone rather than using stock.[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1530818, member: 15199"]If there are 100 million shares outstanding in a stock and you are long ( own) 100 shares, you do not own 1 millionth of the the company. You can't go in and start taking your shares' worth of paper, pencils, or even dirt. It belongs to the company. You are buying any future appreciation ( and any dividend) or loss of value of your 100 shares. If the stock doesn't pay a dividend, you generally can not realize any appreciated value for your shares unless you sell at a profit. So you are saying there is a future market for stock other than the stock market? If you have 100 shares IBM, where do you take it to short IBM without giving up the stock or borrowing more from you broker? You can use long term put options to "short" the stock without giving up the 100 shares, but you pay the same premium I would just going and buying the put options without owning any IBM stock, so the ownership of the stock along with put options establishes a straddle situation where you can profit from either direction movement, but it is far cheaper to do the same using call options and put options alone rather than using stock.[/QUOTE]
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