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Re: Stocks vs. Commodities



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> From: WJame17842 <WJame17842@xxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Stocks vs. Commodities
> Date: Thursday, January 01, 1998 4:37 PM
> 
> Stock investors create ownership in a company, which can be short term or
long
> and take advantage of price appreciation and avoid paying taxes until the
> stocks are sold, whereas futures expire in the short term and often the

Really, which futures expire? Contracts/Options expire. Contracts do not
expire worthless unless the demand for a commodity completely disapears. 

> contracts expire worthless, but a profit can be made with the proper
analysis
> and timing of entry and exit points. Stock prices fall and rise just like
> futures, but stocks can split and appreciate even futher. CSCO for
example, a
> 1991 IPO, has split six times since 
> the company went public. I've been in the market since 1990 trading
stocks and
> I've never heard of a future splitting, although I am studying the
futures
> arena and follow certain commodities, but I have no intention of trading
this
> arena until I finish 12 months of paper trading. But I can sayone thing I
> dislike about the futures market is that insider information is somewhat
legal
> and that is totally unethical behavior where money is concerned !
>