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Old 11-14-2015, 08:12 AM   #4
Powerplay Quarterback
Join Date: Jan 2011

Originally Posted by Slava View Post
First of all, thank you for reading and posting something!

To your first point, I'm not sure I understand what you mean? I do agree that the stock market is based on growth, but the gains an investor makes are still at someone's expense. It doesn't necessarily feel like that, but it is the way it .
I'd also disagree with this point. Let's say I invest $1.00 per share in an exploration company whether by private placement or simply buying the shares in the open market. Company uses funds from private placement to drill and discovers something of economic value, produces it, sells it, increases earnings and the value* of my $1.00 share goes up. Or alternatively having bought the $1.00 share on the open market I simply take part in the upside sell and move on.

*Ignoring the dilution aspect of a private placement and assuming the money raised/spent increased value more than dilution.

In both instances no one has lost. The actions of the company have increased value for everyone. Someone may have sold me the share at $1.00 had I not participated in the private placement but they could have bought the share at $0.75 and profited.
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