Re-posting this article under different label after reading an email from one reader.
In the stock market where does the Money come from?
A picture is worth a thousand words. When you see a picture, it will strongly embedded in your mind for a long time
As you can see from the picture. Companies DISTRIBUTE stock dividends and other Investors/Traders in the stock market all together significantly CONTRIBUTE to the capital appreciation of stocks. The amount of money distributed by companies is pale compared to the amount of money contributed by other investors/traders.
Firstly, you are either contributing to the market or are taking contributions from the market.
Secondly, are you aware of possibility of falling into potential dividend traps?
I think one reader has become aware of potential dividend traps from the following sentences in his email to me.
" ... I was led into thinking in ......