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Daniel Boyd

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It should be illegal to sell shares within 3 years of buying them

Once upon a time, shares were invented as a way for companies to generate capital for investment. The investor provided the capital to benefit from the profits that were generated on the basis of this investment. Turning investment into profit takes time.

Today, shares are bought and sold in microsecond transactions that purely aim to cash in on the largely random fluctuations that are generated by the trading system itself. Investors (and traders) earn money not through what their capital enables, but by their ability to second guess these self induced fluctuations. Immense amounts of money are tapped out of the system in this way without performing any service to society or industry.

As if that weren't bad enough, we now have a financial market flooded with derivatives and other constructions that are even further removed from any relation with investment and productivity.

Because society still needs money as a tool in the real economy, it has become enslaved to the financial markets, rather than the financial markets servicing society.

It's time to put and end to this parasitism, and the solution is simple. Make it illegal to sell shares within 3 years of buying them. This would ensure that investors provide capital on the basis of reasoned confidence in the future of their investment, and profit only from this return.

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  • Sep 26 2013: Why would you want to stop people making money, if you agree with a Capitalist economy?
    • Sep 27 2013: Therefore, you believe that prostitution, heroin trade, methamphetamine, etc., should be legal, since outlawing these things prevents people from making money.
      • Sep 27 2013: The incentive is just the same, making money, they just happen to be of differing values on the moral scale.
        I understand where you are coming from, making things a little better, no more than, maybe walking onto the battlefield with a box of plasters. It's not going to tackle the real problem, knowing the price of everything and the value of nothing.
        • Sep 27 2013: Go talk to Cambodia and see what your kind of "solution" ended up doing. You want to simply make it illegal to turn a profit. China tried that. It failed. They backed off. Cambodia tried that, and the phrase "killing fields" was coined to describe what the Cambodian government did in the attempt to do so.
        • Sep 27 2013: Cambodia under Pol Pot outlawed making money.
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        Sep 27 2013: i, for one, believe that yes, all of the mentioned should be legal. but for different reason.
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        Sep 27 2013: Bryan, prostitution is legal in many countries and it just happened not to be in most states of yours.
        Heroin was officially traded as painkiller for many years and before its destructive character as well as its misuse was discovered. Other drugs, such as Marijuana, are legal in some countries as well.
        Methamphetamine is in use for treating ADHD and also available in other medical products.

        So for many of these services and products exist non-criminal and well accepted markets in which trade is done and money earned. But I think it is the 'misuse' of those you were referring to?
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      Sep 27 2013: This thread is completely off track. I've got nothing against money or earning money. I just think that earning money should involve creating or providing something of value. I don't see what financial trading contributes to society that justified the amount of money that it 'earns'. Perhaps I am missing something here though. I'm open to suggestion if anyone can come up with a justification.

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