From: "Steve Reecy" 
Newsgroups: alt.invest.real-estate misc.invest.real-estate
Subject: Re: Flipping IS Illegal
Date: Fri, 11 Jul 2003 22:03:32 -0400


Baird Spalding  wrote in message
news:iUHPa.1325$Y_1.295@fe04.atl2.webusenet.com...
>
> On 10-Jul-2003, "Steve Reecy"  wrote:
>
> > Think about this.  Is it illegal to buy and sell shares of stock
quickly?
> > What about a car?  Whats the difference?
>
> The prime rate.
>

All money has a cost of capital.  Even if its only opportunity cost.  Car
dealers have money tied up in inventory, and with rates this low, it is
doubtful that it is their own.  You can always sell stocks to pay off debt
accruing interest (unless you're not leveraged in all...in which case you're
in the wrong newsgroup)  In general, businesses won't do a transaction
unless its internal rate of return is better than their cost of capital.