Today, we will certainly agree that the market and the investment industry itself are far from perfect — sometimesfar. Let’s look at five reasons the investment industry may work against some investors. Being aware of these issues might save you some money, prevent panic or at least educate you on what you should do rather than what you have been doing.consumer price index
We know many investors who will sell a company after one bad quarter. But the best companies play the long game: focusing on long-term gains, even spending more money in the short term to get there. How much do you think investment companies get paid to sell a hot IPO? Generally, investment bankers get three per cent to five per cent on a deal. Think about this: on a $2-billion IPO, bankers can make $100 million. On popular deals, clients are clamouring for stock allocation, so it’s not like it’s hard work to sell the shares. Yes, plenty of work is needed before a company goes public. But $100 million? For the life of me, I can’t figure out why competition hasn’t lowered these fees.