- 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.