2007-01-20 13:22:39 · 3 answers · asked by kpardise 1 in Business & Finance ➔ Investing
It's the way they do profits. For mutual companies, they generally grab a percentage somewhere around 1% a year so the more money in the mutual fund, the more money they make.
Then there are brokers that buy, sell and do options. They make money off the fees, so if 10 million people buy a stock, that's 10 million generated fees which gives them more money than 10,000 fat cats that might buy one or twice a year.
The investment firms are not in it for a person to make money otherwise offshore hedge funds wouldn't be as popular.
2007-01-20 22:52:33 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
because the profit margin comes from the little guys buying and selling. the big guys buy and hold RARELY selling.
2007-01-20 13:47:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Because the little guy has money too.
2007-01-20 17:43:30 · answer #3 · answered by Anonymous · 0⤊ 1⤋