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The Stock Market- Minus the Jargon


Some people have an in built defense mechanism that stops them from investing. Their heads shake when you talk to them about investment.

"Danger!", "Market Drops 50%", "Investors loses their shirts!" are what they see and feel.

This isn't helped by stories that they have read about people who lost fortunes in the stock markets through speculation. Nor by the jargon loaded commentaries you see on financial newspaper and on tv.

Stag, short, contra, long, neutral, passive, active, EMH, IPOs, breakout etc

Why can't a financial reporter/consultant just speak in plain simple English?

My theory is that they need to confuse people, and make financial products seem so complicated that you need their help. Help from the same financial consultants and reporters who determine for you what you buy, keep or sell.

The more they can confuse you, the more business they make.

At its heart, the stock market is just a place where companies raise money to expand their business. '

And where investors who buy a piece of these companies get a slice of the rewards when these companies do well. Of course, if I had invested in the Enrons or Lehman Brothers and I would get wiped out.

Then again, if you had follow Peter Lynch and gotten just one ten bagger from a stock portfolio of 10 stocks, you would have done well even if one of the 10 stocks turn out to be an Enron. A 10% total loss versus a 100% gain from one stock assuming the rest of the eight stocks remains the same.

Much better odds than gambling in the newly opened casinos don't you think?

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The information contained in this blog is prepared from data believed to be correct and reliable at the time of publication of this report. The authors do not make any guarantee or representation as to the adequacy, accuracy, completeness, reliability of the information contained herein. Neither the authors or any affiliates or related persons shall be liable for any consequences (direct or indirect losses, loss of profits and damages) of any
reliance placed on information provided in the blog.

Shares and financial instruments illustrated in this blog can go down sharply or in certain instruments suffer total loss on the initial investments. Investors are advised to make their own judgment on the information provided and consult their own financial advisors or consultants as to the suitability of the products illustrated to their particular financial needs and objectives before acting on any information contained herein in this blog.