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Okay, so assuming that the only times that your stock is actually worth anything is when someone takes over the company (hostilely or not), then isn't buying stock a hope that the company will get bought out?

No, your stock is worth something because it represents a share of the company For richer or for poorer, you own a fraction of the company. Ownership isn't a new concept, we brought it over on the mayflower and it's been thriving in North America ever since.

Your problem with the stock market seems to be that you're never going to end up with a controlling stake in the company, so you'll always be at the whim of the other larger investors. But, seeing as they're larger investors, they're going to have their best interest at heart, which conveniently enough is your best interest. There of course arise situations where their best interest may not be your best interest. The SEC exists to prevent this from becoming an issue.


Matthew