The Ponzi Factor: The Simple Truth About Investment Profits
by Tan Liu  (Author)

About the Author
Tan Liu completed his undergraduate degrees in economics and finance from the American University. He has worked for two hedge funds and a trading firm, but spent most of his finance career managing distressed assets for a bank. He officially exited the finance industry in 2015 and is now finishing a master's degree in applied statistics.

About this book
The Ponzi Factor is the most comprehensive research ever compiled on the negative-sum nature of capital gains (non-dividend stocks). The book shows why, as a whole, ALL investors will lose money from buying and selling stocks.
Most people don't realize that profits from buying and selling stocks come from other investors who are also buying and selling stocks. When one investor buys low and sells high, another investor is also buying high and needs to sell for even higher. Companies like Google, Telsa, Facebook never pay their investors. Their investors' profits are dependent on the inflow of money from new investors, which by definition, is how a Ponzi scheme works.
This book is not for everyone. If you are a finance junkie who wants to rationalize why companies don't have to pay their investors and believe a system that shuffles money between investor can magically create more money than people contribute, then this book is not for you. On the other hand, if you understand why we can't create money by shuffling it with imaginary paper, and that investors invest because they want money, not value, then you will learn something you will never forget: The mechanics of how the stock market works and what really makes a stock price move.
A stock without dividends is a Ponzi asset. It's not how equity instruments were designed to work historically and not how ownership instruments are supposed to work logically. The Ponzi Factor is not a perspective or an opinion. It is a proof that is based on definition, logic, and it is supported by observable facts and history. This is not a story that will disappear after another market crash. It is an idea that will remain relevant for as long as the stock market exists.

Brief contents
INTRODUCTION
ONE: A-Cruel Accounting
TWO: The Backbone of the Industry
THREE: The Idea of Investing
FOUR: A Legitimate Idea
FIVE: The Universal Error
SIX: The Stock Market
SEVEN: Two Paths
Lexicon
Endnotes
References

Series: The Ponzi Factor (Book 1)
Pages: 169 pages
Publisher: Independently published (February 10, 2018)
Language: English
ISBN-10: 1976949955
ISBN-13: 978-1976949951