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JoeyV
Lv 7
JoeyV asked in Business & FinanceInvesting · 9 years ago

Talking with Congressman about Derivatives packaged as ETF's and stocks?

I hate these things like TVIX and UNG because I think we are inviting people to speculate on derivatives by making it as easy as buying stocks and people who don't have a clue are doing it. I also hate most mREIT's because they are convincing mom and pop to make leveraged bets on toxic securities. I've got a phone call with a Congressman about this tomorrow. Who wants to add anything?

Update:

Edit: Uh, David, we do ban sex for people under 16 or so.

Update 2:

Edit: Uh, David, we do ban sex for people under 16 or so.

Update 3:

David..try hard to think a little. We rightfully protect people like you from tons of different investments including hedge funds, limited partnerships, exotic derivatives, money market securities, etc.. If you think that anything in my post implies that we should send under 16 year olds to jail then I gape with incredulity at your very poor reading comprehension and think we need to protect you even more. How can a guy with your obviously unbelievably porr reading skills understand a mutual fund prospectus, for example?

Update 4:

David..try hard to think a little. We rightfully protect people like you from tons of different investments including hedge funds, limited partnerships, exotic derivatives, money market securities, etc.. If you think that anything in my post implies that we should send under 16 year olds to jail then I gape with incredulity at your very poor reading comprehension and think we need to protect you even more. How can a guy with your obviously unbelievably porr reading skills understand a mutual fund prospectus, for example?

5 Answers

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  • John W
    Lv 7
    9 years ago
    Favorite Answer

    Hmmm, asking a politician to not misrepresent, aren't you asking for a lot?

  • Jerry
    Lv 7
    9 years ago

    I think you are on the right track focusing on how mom and pop investors are hurt; young novice investors, unsophisticated elderly voters, etc.

    Some of the ETNs have tax complications that are not well disclosed. Lots of small investors are getting K-1s without understanding why or what to do.

    Disclosure of how a leveraged or inverse ETF actually performs.

    If you can fit in a great example of a current penny stock pump and dump: GWBU

  • 5 years ago

    Penny stocks are prone to violent fluctuation (volatility), many people believe that they'll luck out with a stock that will jump from $0.08 to $8 in two weeks. And it's happened. Learn here https://tr.im/REuU3

    Scour enough investing message boards and you're sure to find success stories from investors who made a mint while "playing the pennies."

    Companies that can successfully make the jump from penny stock to power stock are rare, but when you find them they pay out in spades. Numbers vary quite a bit in the penny stock world, but investors have raked in gains over 1,000% in a couple weeks' time. The real trick is finding the right stock.

  • Anonymous
    4 years ago

    1

    Source(s): Secrets of Great Investments http://tradepennystocks.gelaf.info/?Ssoe
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  • ?
    Lv 7
    9 years ago

    Virgins don't have a clue what they're doing, so we should ban sex.

    Addendum:

    Certainly there should be laws against scams. But you cannot "protect" people from complexity with more laws or more cops or by banning complexity.

    It is not the gov't responsibility to protect us from everything we don't know. A cop on every street corner, for example, still cannot protect us from violent crime. It is the individual responsibility to learn and due diligence that protects us.

    If you put all of the law books on one shelf, that shelf would extend over 80 miles. And you and I are responsible for knowing every one of those laws. How ignorant can we be? At what cost will creating more laws be? At what loss of freedom? Will the new laws be expanded, or because of the nexus you've given them, will there now be more laws expanding to everything in infinity because of your original law? How ignorant can YOU be? I certainly do understand people like you that want to be "protected" against everything because you don't have the common sense to come out of the rain. I understand protecting me against a hedge fund, but is it really necessary, worthwhile, and for our own good or for the good and use and invasion and ulterior motives of unscrupulous gov'ts? Gov't is not our deliverer, but rather wants to be our Master, and you're inviting them.

    I don't know about you, but I don't want or need this much "protection," oversight and invasion. Whatever happened to freedom? Freedom to make a mistake and learn from our mistakes is the American way, not protectionism and socialism and special interest and banning everything we don't understand. What, you want to ban capitalism? That's already been tried.

    Oh, and certainly, the gov't "tries" to set laws on morals, but a complete failure. Is that your model? By your definition, anyone under 16 having a baby should go straight to jail. Okay, not a very good analogy. Jerry gave a better one: ban all penny stocks, since most investors don't understand them. Make tons of laws against them, start new committees with oversight, generate more income for gov't with fines and fees and growth. Geez, just what we need, more and bigger gov't for more "protectionism" against a lack of common sense.

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