domingo, 30 de janeiro de 2022

The difference between foreign investment and financial speculation

The difference between foreign investment and financial speculation
Roberto da Silva Rocha, university professor and political scientist

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The IPO is the unique moment when the closed company opens itself to public participation for the expansion of its share capital, its investments and the payment of its debts. In this way, the only way for a company to capitalize without going into debt is the IPO, which is the moment when the investor actually invests venture capital for the growth of the company, unlike the financial speculator who only observes the balance sheets of the company, whether it has made profits or not, or whether it is expanding in the market, whether it has new products, whether it is researching new technologies, For the speculator, all that matters is today's date, not the company's future or past, nor its reputation, nor its financial or accounting balance sheet, it is enough to be physically very close to the stock market to capture the movement of the candle in order to gain in a few milliseconds a few thousandths of a percentage point of increase in the buying and selling value of the shares in order to invest millions of dollars.
What does this have to do with the market, with economic injunctions, with the growth of the company? Nothing. The value of the shares in the stock market does not bring any growth or benefit to the life of the company, it does not hinder the production or marketing or harm, see that the fall of the shares of Coca Cola or the rise in the value of the shares of Cola Cola does not change its marketing in more than 180 countries of the world because the consumer of Coca Cola does not care about the value of the shares of Coca Cola.
I don't know where the economic experts and journalists learned this bullshit that the movement of the stock market means an indication of the financial health of the country or the company? 
At the time of the 1929 crisis, there was a stock market fever in the United States, where people did not want to work to survive only on the speculations of the stock market, they created companies with shares to be traded on the stock market, virtual companies that existed only in the stock market accounting just to sell and buy shares in the financial bubble, nothing too much if we know that the capitalist economy is a bubble, but the synesthesia of the capitalist bubble is the production of goods and services in the front, especially for the American economy where 80% of the GDP comes from the service sector. 
To defend capitalism is to defend the service sector for the administration of capital, services, mainly entertainment, communications, such as internet, projects, banks, money circulation and financial services, industry, production of food, goods and raw materials are only secondary and do not even reach 20% of the world economy.
*** Translated with www.DeepL.com/Translator (free version) ***


Roberto da Silva Rocha, professor universitário e cientista político

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