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rockie101

09/15/09 6:58 PM

#95128 RE: polite_pessimist #95122

polite...how long you own a stock doesn't have anything to do with how much you get....one day or 10 years.
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Jestiron

09/15/09 11:09 PM

#95169 RE: polite_pessimist #95122

Many people forget what they are buying when they buy stock in a company. One share of any company is a potion of control of a company WHILE you own it. It begins the moment you own it to the moment you sell it. It has no memory and does not care what its worth once was or what it will be, but only what it is worth RIGHT NOW.

The fact that you haven't owned for as long as me has no inherent difference on what you deserve based on the current or future price. If you time things better than me...you can realize a better gain in a far shorter time frame...but the share is still simply a share.

Some have argued that the price (not value) of a share is NEVER wrong. It is based on all of the factors that economists study...and some of the factors that we see and hear about. Market manipulation affects price artificially,...yet the price is the price. Based on this...it is safer to say that Maniupulation is value manipulation.

So...you would get paid as much as me in the event of a settlement (all other things being equal) because the settlement has not affected the PPS yet. If/When a settlement is announced and enacted, you and I will benefit in the same way because we both hold these "shares". They have no memory...and don't care about those who hold them...or when they were bought.

Does this help at all?
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TJ1947

09/16/09 1:37 AM

#95199 RE: polite_pessimist #95122

Polite... say you bought a house in the 90's for $200k when the housing market was booming. Your neighbor bought the exact same house in the same neighborhood last month. Since the housing market is depressed, the value of the house he bought is less so he only paid $150k. Is your house really WORTH more than his? No. But value and price are set by the market.

Say in a year, the market comes back and you both sell comperable houses for $220k each. You made $20k, he made $70k. He just bought and sold in times that were more profitable.