Who Creates Billionaires? Stocks or Forex

Discussion in 'Economics' started by bearice, Apr 7, 2011.

  1. Example, if Microsoft shares are worth $100 each today so Bill gates is worth $50 billion. After 1 month microsoft shares are worth $125 because millions of new investors purchased/invested microsoft shares. So now Bill gates will be worth $60 billion (estimated). To my understanding owners of stock exchange listed companies have/own 50% shares of their company.

    Now consider Forex trading.....

    I think EUR/USD transactions are $1 Trillion per day. If majority of forex traders think today Euro is strong they will buy/invest Euro and when they close the deal, they earn profits. Estimated $500 billion will be traded in Euro per day but here no billionaires are created. Forex traders share the profits. I think the value of US dollar and Euro also does not change because of daily forex transactions.

    But in stock markets a investor will invest $10,000 and when the shares increase 50%, he earn $15,000. But the company owner earns $500 million or $1 Billion because millions of investors have purchased the shares of his company.

    So who creates billionaires, Stocks or Forex.

    Correct me if I am wrong? I have started a discussion.
  2. Can you be banned from stating new threads and wasting time?
  3. Fools and idiots are the first to speak/react. Intelligent people speak later on/afterwards.
  4. If the stock market goes up that much, inflation/currency destruction will destroy buying power.

    In Turkey, 1982-2005, the stock market went up over 2,000,000%... about 66%/yr compounded. For those "lucky" enough to have been fully invested for the entire ride (and not accounting for taxes)... they STILL LOST 98% OF THEIR BUYING POWER IN THE DEVALUATION.

    Just before the devaluation in 2005, a cup of cafe coffee cost 3,000,000 Turkish Lira. After the devaluation, a cup of coffee cost 3 New Lira... the devaluation was 1,000,000:1, lopping off 6 zeros.

    (Recalled from memory... look it up if you find this astonishing.)
  5. My point is that average people say billionaires have $50 billion or $70 billion.

    But owners of stock companies start their business and get it listed on the stock exchange and they get busy with their daily business. Then millions of small investors purchase shares of the company and after 8 to 10 years, the owners have $30 billion or $50 billion whereas individual investors have $10,000 or $100,000 or $1 million or $1 billion.

    But in forex trading only the forex traders earn money and profit even when forex transactions are $ 4 Trillion per day or $1,100 Trillion per year. No billionaires are created from other people's investment for 4 or 5 years in forex. If some forex traders has long-term profitable forex trading system they can become billionaires for forex trading.

    So millions of investors create few billionaires in stocks and they say there are 1000 or 2000 billionaires only.

    In forex trading, everybody earns big money from indvidual successful trading. Nobody helps anybody in becoming billionaires.
  6. I am saying that in stocks, millions of investors create monsters and they say "who created the monsters".

    I mean, in stocks, millions of investors create few billionaires and they say "who created billionaires".

    The same can be said for Real estates also.

    No monsters are created in forex trading. The whole country/nation benefits (currency value) and profits are from individual successful trading performance.

    In forex trading, the whole country/nation benefits because the currency value has reached new levels from many years of business and trade performance and investments.

    But in stocks only few billionaires have $40 Billion to $70 Billion from many years of investors investment.

    The value of a currency is arrived/detetmined by the business and trade performance between 2 countries. I agree, daily forex transactions also changes international currencies price/value because the price change every second or every minute.
  7. LeeD


    bearice, it would make the discussion more substantiated if you named a few people who actually made it into the billionair list by trading forex. (Hint: there are a few.) Before you do it, this thread is pure speculation of the kind "with extreme luck and leverage some people could have done that".
  8. George Soros, who became a billionaire due to currency speculation.
  9. Trade Forex if you want to be billionaire and not others.
  10. Bearice,

    I have no idea whre you got your information or ideas but you are incorrect. A company doesn't own 50% of its shares. It owns whatever it chooses to float. If it floats too much, it can choose to buyback or issue shares.

    Look on yahoo finance or MSN finance or any other stock stat site, you can see two numbers: float, and shares outstanding. The shares outstanding=100% of the company, the float is what is not held by the company and traded. The company can hold most of its shares or, in many cases, close to NONE of its shares. Rarely will you see 50%.
    #10     Apr 7, 2011