Message:

<p>[QUOTE=&quot;medoraman, post: 1339496, member: 26302&quot;]Well that is our difference sir. I believe the company, by nature of its assets, does have intrinsic value. </p><p><br /></p><p>I was simply asking this of you to show the difference between stock and other securities. A bond has no intrinsic value, its a promise to pay. Same with many other financial instruments. A stock, though, is owning the company, and therefor its assets. Now, as owner you collectively may make bad decision like hiring bad management, pursue mone losing businesses, etc and have to start selling assets, but at any point in time a stock can be summed up at a minimum as the value of its assets. Yes, debt and other obligations can complicate this whole ownership, but at its core a stock is ownership of the assets of the firm. The example I gave was simplistic to point this out. If you owned 100% of the shares, you were the owner of the $30 million in hard assets. Period. If you owned 1 share you owned 1 millionth of those same assets, and you had 1 millionth say in running the company.</p><p><br /></p><p>If you do not believe the company has intrinsic worth, then that is why we are disconnecting. We are disagreeing on the semantics. I just wanted to explain WHY I was asking the question, the point I wished to make.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in