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dpdoor (< 20)

They are getting rich off investors 401ks



May 11, 2010 – Comments (1)

Lets say you wanted to make a fortune. You could get some rich investors together and start a business that fit a obvious niche; chain of coffee shops, sporting equipment, house wares, electronic. Go public during the boom times, sell your stocks an make sure by any means possible to show growth in revenues and profit. Certainly your stock price would have gone up and you and your buddies give each other stock options that you sell for millions of dollars in profit. You use that money to do some creative manipulation of inventory and show more revenue and profit. Keep repeating the cycle and there you go, people are buying your stock like crazy and you issue more stock options. Some of the profits you invest in other companies and in times like March of 2009 to December of 2009 you make a nice return. So now what do you do when the market goes flat or starts to drift down. It eventually breaks the cycle. How do you do your tricks this March thru December? What are your profits going to look like in two quarters? Afer all it is the stocks that make the profit not the profit that makes the stock.

1 Comments – Post Your Own

#1) On May 11, 2010 at 4:48 PM, russiangambit (28.67) wrote:

401K is a big racket, for manty reasons - brokerage fees, sophsiticated trades profiting ftom unsophistacted 401K investors, and the reason you listed as well.Without 401Ks I doubt there would';ve been a mutal funds industry at all.

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