Governments use tax to change behavior

Securities are never immune to the interference of central government. There is a saying among financial experts that you can work out the policies of a government by looking at the tax code. Those who participate in the securities market are not immune to this truth.

If the government so wishes, it can completely crush a certain sector of the securities market. The big bosses know this and so they make sure that they do not do anything to jeopardize their relationship with the politicians.

The business that you are doing will determine your wealth

The securities market is not just about buying shares and forgetting about them. It involves the daily grind of managing those shares and trying to extract as much profit as possible from them. Those who forget this important fact will only realize too late that their money has disappeared.

When we had the global downturn people forgot to mention the fact that there had been a degree of negligence on the part of the investors who were ultimately fleeced. They thought of the stock market in purely abstract terms and therefore did not look behind the securities purchase to understand what was really going on.