The Conservative Cave

Current Events => Economics => Topic started by: SSG Snuggle Bunny on August 21, 2012, 10:46:42 PM

Title: Should speculators be required to take delivery of their purchases?
Post by: SSG Snuggle Bunny on August 21, 2012, 10:46:42 PM
Discuss.
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: Duke Nukum on August 21, 2012, 10:48:14 PM
That would be...dumb.
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: SSG Snuggle Bunny on August 21, 2012, 10:55:27 PM
That would be...dumb.

Okay.

But why?
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: thundley4 on August 21, 2012, 11:20:14 PM
Discuss.

And/or pay for the goods?
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: obumazombie on August 22, 2012, 02:19:19 AM
Okay.

But why?
Why is it okay ? When people buy futures, they're not buying "presents". If they wanted to speculate in an existing tangible security there are innumerable other options. The futures market provides stability for buyers, sellers, and speculators, among the many other benefits it supplies.
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: formerlurker on August 22, 2012, 05:26:00 AM
Like a meteorologist, it's a great gig if you can get it.   Always wrong, but when it is always subject to interpretation of variables which cannot be controlled it's all good right?

Mommas should ENCOURAGE their children to grow up to be speculators.    :-)
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: Zeus on August 22, 2012, 05:42:47 AM
When people purchase a company's stock they aren't buying the stock for what they believe is the top value of the company. Rather they are speculating that the company's stock value will rise at some point in the future. Funny think is they aren't called speculators but investors.
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: obumazombie on August 22, 2012, 02:16:29 PM
When people purchase a company's stock they aren't buying the stock for what they believe is the top value of the company. Rather they are speculating that the company's stock value will rise at some point in the future. Funny think is they aren't called speculators but investors.
They buy on present value, and quite often for their dividend plans. If at some point in the future they rise, that's a bonus. But also don't forget puts and calls. They tilt present values in the direction of a futures market.
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: Kyle Ricky on August 22, 2012, 02:31:34 PM
They buy on present value, and quite often for their dividend plans. If at some point in the future they rise, that's a bonus. But also don't forget puts and calls. They tilt present values in the direction of a futures market.

Some do buy for the dividends, but not all companies offer a dividend. So, in that regard, they are buying the stock in the hopes that it will rise.

Topic: I think this speculator stuff was all made up by the MSM and liberals to try and get Barry off the hook for the high gas prices. You never heard them mention regulators when Bush was President. But in case, I kinda agree with only allowing people who will use the product be the ones to bid on it. Although playing the futures market is pretty fun. Personally I am happy with the bonds, options, and simple stocks; and in the process now of looking into hedge funds...
Title: Re: Should speculators be required to take delivery of their purchases?
Post by: rich_t on August 22, 2012, 04:11:29 PM
They buy on present value, and quite often for their dividend plans. If at some point in the future they rise, that's a bonus. But also don't forget puts and calls. They tilt present values in the direction of a futures market.

I buy into mutual funds that in turn buy stocks, bonds and other financial assets on my behalf.  I buy with an eye toward growth over and above whatever interest and dividends that the funds might offer.

I expect the fund manager(s) to invest in stocks that are expected to increase from whatever their current value is.