I've actually wondered if we're watching the extremely early stages of a secondary market forming, a market which the average investor will find as
his only outlet to invest in 10 years where the megaconglomerates & governments control all primary stock and then "allow" the small investors to
purchase stock in the megaconglomerates, themselves, based on whatever stock those entities individually control. That particular system would ensure
that the only ones truly at risk of losing money would be the individual investors, as the megaconglomerates wouldn't lose money so much as they
would simply experience an ever revolving cycle of trade-offs between themselves.
No, no .. we are not in the early stages of that..
We have already been there?
I can take 400k an invest it into a small regional corporation.. I won't be majority share holder by any means, but I will still hold quite a few
votes.. depending on the number of stocks issued of course.. but assuming it is a normal sized regional corporation, it's a pretty big investment..
If I take 400k and invest it in Microsoft (DOW) .. I will be an ant? .. If I invest in Google .. I might get 900 shares out of hundreds of
million..
So WHO owns the shares? .. Who trades them? .. If the DOW drops 500 points, someone.. somewhere.. is unloading money big time.. WHO? .. NOT THE LITTLE
GUY .. "jittery investors" do not hold much sway over a huge index like the DOW..
The DOW represents 30 companies.. THIRTY COMPANIES.. The largest banks, the likes of Microsoft.. GM, McDonalds, Proctor Gamble..
Seriously .. it would take billions of dollars to have influence over these companies.
So we already see a market where the little dude can look in.. not control anything, might make a total $25 off dividends each quarter because that's
all he can afford to own.. might FEEL like he owns something big.. DOW could rally a thousand points, that little guy might make $30.
Most average joe investors .. middle class America... never sell their stocks.. they don't have much to begin with anyways, but what they do have
they "ride the waves" .. because they typically don't need the cash right now..
Typical Day Traders.. guys who sit in their pajamas with their face glued to the screen .. typically don't trade on the DOW.. why spend so much money
to hope 300 shares will raise $5 each.. when you can invest in another company and get 3,000 shares and have them rise $5 each? In the trading
circles I have seen (day traders who congregate into each other and share ideas, plans etc) none ever purchased huge corporations like Chase, BoA,
McDonalds.. no sense to .. not if your looking for short to mid range gains.. who want's to see their trading account raise a mere 6%?
So to all the chumps out there.. go on .. buy that 110 shares of Google that you will spend a years worth savings on .. and don't forget to vote come
your corporate elections via your Common Stock..
PS.. if you ever have a trading account and you get all the fancy graphs, charts, moving lines and other colorful hypnotic effects.. you will see the
actual trade sizes in real time.. so take Microsoft.. you might see 100 sell, 500 sell, 600 buy, 800 buy, 76,000 sell, 110,000 buy, 80,000 sell ..
Those are trades from Fund managers...

I calculated a buy once, something like $30,000,000
[edit on 10/7/2008 by Rockpuck]
One more edit..
We all watch the DOW and go WOW (hey I rhymed..) .. but in reality we SHOULD be watching the S&P 500 .. as it represents 500 of the TOP companies in
America.. FIVE HUNDRED. DOW represents 30. hmmmmm
[edit on 10/7/2008 by Rockpuck]