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Kane · 01-05-2018, 03:32 PM

(01-04-2018, 07:50 PM)TJBender Wrote:
(01-04-2018, 03:19 PM)StroudCrowd1 Wrote: A company not matching isn't an excuse to not save for retirement. That is the individuals fault.

I was simply combating TJBender's point that only rich people are benefiting from this market which is simply a big fat lie.

Companies artificially raise their stock prices by firing large numbers of employees. These actions benefit the major stakeholders, typically the high-priced executives and board members, and screw the rank and file.

My issue is not with the stock market. It's with this longstanding insistence upon using an easily-manipulated number derived from 30 cherry-picked companies that can be dropped for underperforming. And what's the fastest way for an underperforming company to raise its stock price?

Fire a few thousand little people just like you and me.

The stock price reaction depends on whether the layoff is a sign of trouble or sign of restructuring to improve the company. Price would fall if investors perceive that the layoff is a sign of distress. However, price would rise if the investors perceive that the firm shedding excess capacity or is changing the business model for the better.