The Stock Market

[ReVeLuTiOnAl^]

Salami...

The stock market has become a real substantial resource of income generation for millions of people around the world. However, the stock market is changeable and it is therefore a risky source of income generation.

What do you think guys of the stock market,
Would you buy shares and trade them in the stock market? or would you rather not to so and invest your money in other sources of income generation?

Let's be more precise and talk about Muscat stock market, it has collapsed for the last 3 years and hasn't stablized until recently when it is starting to revive again. Would you tarde in Muscat Stock Market? Or have you already traded? or would you rather not to do so? and why are your reasons in both cases, i.e. whether to trade or not..

[Arabian Princess]

Well a very intresting question Reve, Thanx for the contribution.

To me, stock market is a way ro invest money when it is stable and when you do not engage in a lot of short selling. I beleive that short selling (when you sell stocks everynow and then according to the market speculations) create this unstable situation in the market. Every company has soem periods when its sales go down and deciding to sell at that time would lead to an increase in the company's misfourtoune!

shares and stocks initially were created to improve investment .. and thats the way it should be.
I would only buy a stock when I beleive that a company has a position to succed according to its managment and operations and I would definatly not engage in short selling

[patriot]

salam,
yes Muscat stock market has gone down withthewind butdie sthatmean we don't invest in it..?
As an investor i will care offcosre about the markets performance but what comcerns me most is to get high return with low risk. I could invest in portfolio where you choose few companies through your broker, and so in this portfolio you may have stocks with high returns along with high risk, or low return with low risk, and there so many ways and techniques (involving mathematics) to find out which one is which...

i would conclude that for me as an investor, yes tru Muscat's market is performing poorly but still there are companies where we could profit, and if we just keep away and don't invest this market will not get up again...

[Arabian Princess]

so anyone has any idea wether he wold invest in the stock market or not?

[ReVeLuTiOnAl^]

salami A-P:

No I wouldn't though I can predict how the market might be in the long run. But I have my own reasons which are much away from what anyoneelse might think.

Economically, I wouldn't invest in the stock market because it is not guaranteed as shocks might be at any point in time and the big example is Muscat Stock Market, still not clear what went wrong.

Other reason which seem strange and illogic for many of you, but it is for me. I don't want to involve in the stock market cause I don't know what sort of investment is used. Let's say I invest in one of the banks, I would totally have no clue on what sort of investment is undertaken by the bank involved. So I always want myself to be clear from which source my money comes.

Other personal reason is that I don't like the way the interest comes from!.. that means I don't like to stay home and waiting for the profits in the dividends to arrive to my home!.. No i like what is called "touch and feel", I like to see where the money comes from and where it goes, i like to use my hands and mind in order to get the money!.

Seems strange huh.. believe me it is enjoyable when you work hard and see how the money comes to you while you work instead of staying at home and waiting for the money to come itself. Yet, everyone has his/her own ways and interests. :)

[Arabian Princess]

Rev,
u have a good point about where ur money would come from .. but the investment in the stock markets are not always in banks .. you can buy shares in a company that deals in a specific area such as fishries and so on ..
about how relaiable it is .. well thats another big question .. but you should try to invest in stocks which have big name sand companies with good potential ..
wining money through hard work is alwasy sweeter ofcourse .. but buying stocks means that you are becoming a partner in the business .. so you are ont earning money thorugh nothing !! the company you bought the share from are like your managers and u r the owner :)

[ReVeLuTiOnAl^]

Originally posted by Arabian Princess
Rev,
buying stocks means that you are becoming a partner in the business ..

I don't want to be a partner, I want to be the business itself ;)
I agree with you in what you said.. and I know how to deal with the stock market, expectation and predictions issues are importan, etc... Still i have my own ways to be in the business.. I really don't fancy to buy in the stock market, but i always follow its news and i like to watch it!.

[Bimzoori]

Timing is a very important factor.. you should be able to predict the best times to buy/sell your shares...

Example, many people lost millions when Muscat Stock market collapsed..had they predicted the collapse, they could have sold their share before hand..

[IceTea]

Originally posted by Bimzoori
Timing is a very important factor.. you should be able to predict the best times to buy/sell your shares...

Example, many people lost millions when Muscat Stock market collapsed..had they predicted the collapse, they could have sold their share before hand..

Collaps of Muscat stock market was a special case, u can't depend on it as it was not normal suitation. This is why many people lost heavely.

[Arabian Princess]

WHat am against in the stock market is this selling and buying because sometimes it is the cause of problems within the stock market.
The Stock Market came as a method of investment on the original company but it is no more like this.

[Bimzoori]

Originally posted by Arabian Princess
WHat am against in the stock market is this selling and buying because sometimes it is the cause of problems within the stock market.
The Stock Market came as a method of investment on the original company but it is no more like this.

Arabian, can you please ellaborate more on this?!

[ReVeLuTiOnAl^]

Yes I agree with Bimmi, your statement is a bit vague, can you explain more.. :)

[mimosa]

I think Princess's point is this:

If you buy stock in a company, and keep it for a long time, you are helping the company by giving it capital investment. As a shareholder, you receive a share of the profits when it does well, and nothing when it does badly. This simple principle of investment is how stock markets came to be invented, and is very similar to the principles of Islamic banking.

But most stock market investors these days (particularly smaller investors) do not invest in this way. They speculate on the share price, rather than investing for a long term dividend. This is not 'investment' in the true sense, it is more like gambling.

[Arabian Princess]

exactly mimosa, thank you for elaborating.
I also meant that those speculation and those rapid activities of buying and selling make the stock market vulnerable to go down in any slowdown in the economy.
as I said, every business goes thorugh a life cycle and it is vulnarable to ups and downs .. so why not keep faith in this paticular company (especially if the buyer trusts the management of the company) instead of buying this and that which creats an unstable nature in the stock market.

PS, am not an expert in the stock market and paticulary any financial aspects make my mind go :rolleyes: so incase I said anything wrong please members do correct me.

[Wanderer]

I own stock in Portland Brewing Co. I purchased it during its IPO (Initial Public Offering).

Its "dividend" is in the form of one free pint of beer (approx value $4) per day for shareholders. Shareholders also receive discounts on merchandise and bulk purchases.

Since I no longer live there - and only visit Portland once a year, I plan on selling it to my brother-in-law.

[Arabian Princess]

I just raised this topic so Qais could have a look at it.

[Arabian Princess]

I raised it again so Aseer Ilshouq would have a look. If you want your topic and this topic to be merged please inform me through a Private message.

[Muscati]

Originally posted by Arabian Princess
I beleive that short selling (when you sell stocks everynow and then according to the market speculations) create this unstable situation in the market.

Arabian Princess, short selling is a form of speculation, but it is not allowed in Oman. It not the normal form of buying and selling. Short selling is when you sell shares that you don't own. It works this way:

You believe a share is overvalued and is about to rapidly drop in price, so you borrow shares from a broker, sell them in the market and wait for the price to drop. When the price drops you buy them back at a lower price and give them back to the broker who lent them to you. The difference in price is your profit. However if the price goes up instead then you have to buy back the shares at a higher price and make a loss. Either way, the owner of the shares never knows that his shares were sold and bought back without his knowing.

If short selling was allowed in Oman then smart investors would have been able to make a killing when prices were dropping in the MSM.

[Arabian Princess]

intresting to know mux that Oman does not allow short selling.
so, if you are to evaluate the MSM fall down, what reason would you give it?

[Aseer_el_Shooq]

Rev,
interesting topic.. about me, I would invest in the stock market IF I have the some capital and time... I don't think that I would take some loans inorder to enter the market like many investors do. But if I ever joined then I would be buying and selling shares instead of buying shares and waiting for the dividends.. thats because I feel that this way would be a faster way of making money eventhough it has more risk.... also its more enjoyable meaning that you feel that you are working ( checking the stock prices, news..etc) instead of setting at home and waiting for your profit...and about MSM, I have no idea about the system over there so I cann't tell anything about it...

Mux,
interesting to know that they don't allow short selling in Oman.. new info ;)