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Suppose I own 5% of Facebook.

Does that mean I get 5 votes out of 100 whether to reject this acquisition? No.

Does that mean I get 5% of the annual revenue for Facebook? No.

Does that mean I can hire my friends to work for Facebook? No.

But But.. I OWN 5% of Facebook! What the hell?

Nope, you own 5% of Facebook shares that are worth as much as what someone else is going to pay for it.

Hence Stock market = elaborate pyramid scheme

But a necessary one to support pension funds, 401Ks, retirement, etc. I mean HOW else is 1 dollar turn to 10 dollars after 40 years?!

Plus, it leads to jobs - illusionary, fake ones, but jobs nonetheless.

Younger generation paying for older - makes sense.. it'll fall apart whenever human race dies off.



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