Who creates Billionaires? Stocks or Forex

[Fire11]

Example, if Microsoft shares are worth $10 each today so Bill gates is worth $50 billion. After 1 month microsoft shares are worth $13 because millions of new investors purchased/invested microsoft shares. So now Bill gates will be worth $60 billion (estimated). To my understanding owners of stock exchange listed companies have/own 50% shares of their company.

Now consider Forex trading.....

I think EUR/USD transactions are $1 Trillion per day. If majority of forex traders think today Euro is strong they will buy/invest Euro and when they close the deal, they earn profits. Estimated $500 billion will be traded in Euro per day but here no billionaires are created. Forex traders share the profits. I think the value of US dollar and Euro also does not change because of daily forex transactions.

But in stock markets a investor will invest $10,000 and when the shares increase 50%, he earn $15,000. But the company owner earns $500 million or $1 Billion because millions of investors have purchased the shares of his company.

So who creates billionaires, Stocks or Forex?

Correct me if I am wrong? I have started a discussion.

[Fire11]

If the stock market goes up that much, inflation/currency destruction will destroy buying power.

In Turkey, 1982-2005, the stock market went up over 2,000,000%... about 66%/yr compounded. For those "lucky" enough to have been fully invested for the entire ride (and not accounting for taxes)... they STILL LOST 98% OF THEIR BUYING POWER IN THE DEVALUATION.

Just before the devaluation in 2005, a cup of cafe coffee cost 3,000,000 Turkish Lira. After the devaluation, a cup of coffee cost 3 New Lira... the devaluation was 1,000,000:1, lopping off 6 zeros.

(Recalled from memory... look it up if you find this astonishing)

[ChaosControl]

Both can create billionaires just as both can result in large losses.
Forex has a much higher degree of liquidity accompanied with even larger margins.

I'm starting to actually like Forex more, especially since it isn't controlled to the degree the stock market is. But I am still just learning about it.

[Fire11]

I am saying that in stocks, millions of investors create monsters and they say "who created the monsters".

I mean, in stocks, millions of investors create few billionaires and they say "who created billionaires".

The same can be said for Real estates also.

No monsters are created in forex trading. The whole country/nation benefits (currency value) and profits are from individual successful trading performance.

In forex trading, the whole country/nation benefits because the currency value has reached new levels from many years of business and trade performance and investments.

But in stocks only few billionaires have $40 Billion to $70 Billion from many years of investors investment.

The value of a currency is arrived/detetmined by the business and trade performance between 2 countries. I agree, daily forex transactions also changes international currencies price/value because the price change every second or every minute.

[ChaosControl]

Um, you do realize there are winners and losers in Forex right?

The main difference is that it cannot be controlled in the same manner, so you cannot get someone like the Fed propping it up to the same degree that they can the stock market, you cannot really get someone who could mess around and screw up an entire currency like you can a stock. Even non-investors deal in Forex all the time, any time you travel to a foreign country and exchange your money you're dealing with Forex. Of course I think this difference is a great one and is one of the reason I think Forex is better. No centralized exchange is a great thing. Centralization is basically bad in anything, stock market is no exception.

Trading Forex doesn't profit a nation, the benefit is the increased liquidity.

I don't really understand what you're saying.

[Fire11]

I don't really understand what you're saying.
My point is that average people say billionaires have $50 billion or $70 billion.

But owners of stock companies start their business and get it listed on the stock exchange and they get busy with their daily business. Then millions of small investors purchase shares of the company and after 8 to 10 years, the owners have $30 billion or $50 billion whereas individual investors have $10,000 or $100,000 or $1 million or $1 billion.

But in forex trading only the forex traders earn money and profit even when forex transactions are $ 4 Trillion per day or $1,100 Trillion per year. No billionaires are created from other people's investment for 4 or 5 years in forex. If some forex traders has long-term profitable forex trading system they can become billionaires for forex trading.

So millions of investors create few billionaires in stocks and they say there are 1000 or 2000 billionaires only.

In forex trading, everybody earns big money from indvidual successful trading. Nobody helps anybody in becoming billionaires.

[Fire11]

The company/corporation owners should raise/collect money from investors from IPO but they should not list the company on stock exchange.

Example, if company owner needs $5 billion they should launch an IPO and collect $5 billion for their company and continue their business but the share should not be listed on stock exchange.

Company owners should pay dividends only to his shareholders. Owners should earn money from hard earned and slow profits and not fast rise in share value.

Shares should be similar to bank loans and company owners have to pay dividend otherwise they will be penalised.

When the company is listed on stock exchange, the owners get away with the excuse that shareholders can earn extremely high profits from stock exchange trading so dividends are not guaranteed.

When company owners collect $10 billion or $20 billion from IPO they do not guarantee any profits as security whereas bank loans needs security and interest guarantee.

Surprising, Trillions of dollars are collected without any security and guarantee and when people lose money they start crying.

I never understood the concept of stock exchange shares trading.