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asked in Business & FinanceInvesting · 1 month ago

why do many people choose to let other people invest their money for them on the stock market? which percentage probably do?

how do they know that their "hedge fund manager" or whoever (What are they called btw? what are the different names for these people?) is not just using their money to drive up prices of certain stocks in order for them to sell their shares to their "Clients" in order to get out before a crash ? (if they can foretell by their knowledge and expierience or their inside knowledge that a certain stock is going to crash or the entire stock market is going to crash?)

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  • Anonymous
    1 month ago

    They don't have an interest in it so they trust a stockbroker.  For people, like me, who do have an interest, I would never give my money to anyone to invest for me.  I do the research and I make the decisions.

  • 1 month ago

    <<<why do many people choose to let other people invest their money for them on the stock market?>>>

    Probably because they would rather have professionals with proven track records manage their investments then to have amateurs, such as themselves, manage their money.

    <<<which percentage probably do?>>>

    I don't know but I think a large percentage have others manage at least some of their investments. For example, I own some stocks that I manage and some mutual funds that other people manage.

    <<<What are they called btw? what are the different names for these people?>>>

    There are lots of titles for people that manage others' money. Probably the most common term would be "fund manager" including

    mutual fund manager

    exchange traded fund manager

    hedge fund manager

    wealth manager

    retirement fund manager.

    <<<how do they know that their "hedge fund manager" or whoever is not just using their money to drive up prices of certain stocks in order for them to sell their shares to their "Clients" in order to get out before a crash ?>>>

    Most fund managers are licensed and monitored to prevent them from doing so. Hedge fund managers are probably the least regulated and most likely to be involved in fraud.

    Making trades for the purpose of influencing the market price of a stock is illegal.

  • Anonymous
    1 month ago

    A lot of peoples time is better spend on their job.  And many own index funds & mutual funds.

    No idea what the hell you are talking about. Lay off the dope.

  • 1 month ago

    Actual hedge fund managers would tell you to get lost if you don't meet their minimum amount invested. They make their money through fees, regardless of whether the market is up or down. You clearly don't know how a fund works.

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