Greetings. I’d like to point out a concern I’ve noticed lately regarding the State of Firestone’s stock trading.
Recently, Scriblelz Animal Food & Co has opened stocks for shareholders to purchase. These stocks sold like wild, and other companies are following in their footsteps regarding the opening of shares and stocks.
There is a massive, glaring issue with this stock trading, however: we have no idea what the profit of the companies looks like. Since shares and stocks heavily rely on the operations and profits of companies and are intertwined, the lack thereof will pose a serious problem for stock investors.
Since there are no profits or revenue tied into this market, it makes it incredibly volatile. All it takes is one person to own a certain amount of stock to sell off, and, well…there it goes. Loses. Debt. Chaos. People start selling, and just like that your stocks are worth nothing.
There are also no laws regarding the trading of stocks. This means that, unless a company regulates its own shares, foul play within the market can create huge issues. This may lead to massive economic crashes, unsustainable purchasing, etc…
All of this combines to create a massive issue regarding stock investment and opens all investors to massive risk.
Think about this: What are you buying? Part of the company. When buying stock, you’re betting on a company’s profit: since you have no access to that, you’re betting on nothing but air. This is a setup for disaster. Combine this with the lack of laws and regulation, and it only furthers the chance of total economic collapse.
(this is incredibly prevalent when you think about the fact that stock prices are likely higher than the entire company’s revenue)
Even if the stock prices don’t collapse, it creates a separate problem. Some corporations are giving vast power to their investors, giving them near-total control of company decisions. If stock prices are to continue to rise, only the rich can purchase them. Since this power is concentrated in one group of people, the rich and elite will hold vast sway over companies to do as they like (like owning a journalism company and proceeding to stop them from printing a negative article on you or a friend)
With all of this in mind, I urge all prospective investors and Firestone citizens to beware of the risks inherent with such a volatile, unregulated and rushed system. It may seem prosperous now, but it may be due to collapse. And if it doesn’t? It only leverages power to the very wealthy.