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Stock Market Loses Face - Facebook Debacle Turns High Hopes Into Potentially Mood-Souring Skepticism

Wednesday, May 30, 2012 - 5:02 AM
From the Wall Street Journal
It is impossible to measure the impact of Facebook's flubbed deal on overall investor confidence. But there is at least one sign of possible fallout: More than $3 billion was yanked from U.S. stock mutual funds by small investors in the week ended Wednesday, according to EPFR Global Inc. in Cambridge, Mass.

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4
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Wednesday, May 30, 2012 - 8:11 AM
"Just 15% of Americans trust the stock market, according to the Chicago Booth/Kellogg School Financial Trust Index, a quarterly survey."

That's the 15% who still just don't get it. The stock market is basically a casino comprised of many, sometimes rigged, games of chance.

There are the dealers (brokers) who charge an ante (commission) in order for you to get a piece of the action. The casino even includes many touts (advisors, market letters and analysts) who will guide you, for a price of course, where to place your bets. Pit bosses (boards of directors) basically run the games and watch for cheats, crooked dealers and their accomplices (unproductive or embezzling executives). The money men (accountant firms) in the back rooms will provide you information regarding the take (quarterly results) on each game and the future odds (outlook) for winning the game.

For the vast majority of games the odds (outlook) will be very favorable so you will bet more money. Some games will even comp you a small amount of money (dividends) to participate. Usually the games with higher odds (risk) will comp you more (pay higher dividends) to stay in.  You can even bet against the odds of winning the game (shorting a stock).

So you see how fun it is? Oh, by the way no beverages, meals, rooms or show tickets are provided in this casino.  You probably have to go to somewhere like Las Vegas for those amenities. 
3
ShorebreakShorebreak2,695 posts since
Apr 6, 2010
Rep Points: 14,611
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