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Thread started 05/19/17 11:35am

domainator2010

Can someone explain the stock market to me?

...I don't really get it. Say Lay's the chip company - if they sell ONE pack of chips for Rs. 10, they make Rs. 10. If they sell TWO packs - their income is Rs. 20, ie. revenue has just doubled. But if their STOCK PRICE was Rs. 100 when they were selling one pack, and they then sell another, it *won't go up to Rs. 200*!!! ie. revenue has no correlation with stock price!! ....So - what the fuck is all this stock market stuff then, anyway?

Also curious about what *other* investment vehicles y'all know about in America (and elsewhere), and what you think of each of them....?

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Reply #1 posted 05/19/17 10:47pm

Cerebus

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Buy low, sell high.

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Reply #2 posted 05/20/17 6:31am

XxAxX

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the stock market is a very, very bad joke. if everyone with investments in the market right now, today, called in their notes and said 'gimme all the cash i'm entitled to, turn all my shares into dollars" the market would crash because there simply isn't enough actual money to back all of the outstanding 'shares' in our 'accounts'. the 'money' is fictional, speculative, and the banks too big to fail are trading in the wackiest speculative shit like 'derivatives'. again. like back in 2008 when a bunch of crooked bankers and real estate brokers decided to sell their fucky failure-prone adjustable rate mortgages as 'asset-backed securities' on the market it screwed things so badly our country had to fucking give money to those crooks to cover the shortfall. and regulations which should have been put in place to make sure those same banks and investment brokerages were playing by the rules still don't exist. the stock market is the financial wild west, the final frontier, a big fat capitalist roll of the dice that enables rich people to grow immeasurably richer on paper without ever lifting a finger to do any real work and without making any contribution at all to society. worst of all (or best, maybe) is that the stock market will fail again, without a doubt. the entire concept is built on faulty reasoning and greed and the players are still playing us all. wtf is a 'derivative' anyway? betting on the future and making a dime if you guess right? wtf is that? not quite the sound and stable foundation we need to build an economy on is it? i know i sound like a weird old fart and there's a good chance i am. biggrin but, i think we will live to see another 1930s style massive financial meltdown. and what will happen to our 401Ks when this all melts down? are we too big to fail? neutral



bah. that's how i see things anyway. confused so imo if you wish to invest maybe think of buying art which will increase in value so buy a Banksy. buy jewelry which hopefully will do the same. consider buying a few acres of land and planting crops to yield in ten years. build a house. find a promising young person and invest in their future. buy gold. just my 10cents



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Reply #3 posted 05/20/17 10:40am

domainator2010

wow! had something to get off your chest, did you? smile I first of all asked you to explain what it WAS, not start ranting! - if selling 2x the packets of chips doesn't double the stock price, then WHAT DOES???!!
what is a "derivative", and what is a "adjustable rate mortgage"?
what is a "401k"?

"big fat capitalist roll of the dice that enables rich people to grow immeasurably richer on paper without ever lifting a finger to do any real work"

Aaah!! - *here*, you're on to something! This sounds like MY kinda style of money making! smile Please, do tell more smile. (why does it take RICH people to get richer? Why can't average dicks do it?)

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Reply #4 posted 05/20/17 11:00am

Cerebus

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Anybody can do it. The world is filled with day traders who make a fine enough living.

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Reply #5 posted 05/20/17 12:44pm

purplethunder3
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stock market = nuts

"Music gives a soul to the universe, wings to the mind, flight to the imagination and life to everything." --Plato

https://youtu.be/CVwv9LZMah0
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Reply #6 posted 05/20/17 3:51pm

morningsong

domainator2010 said:

...I don't really get it. Say Lay's the chip company - if they sell ONE pack of chips for Rs. 10, they make Rs. 10. If they sell TWO packs - their income is Rs. 20, ie. revenue has just doubled. But if their STOCK PRICE was Rs. 100 when they were selling one pack, and they then sell another, it *won't go up to Rs. 200*!!! ie. revenue has no correlation with stock price!! ....So - what the fuck is all this stock market stuff then, anyway?

Also curious about what *other* investment vehicles y'all know about in America (and elsewhere), and what you think of each of them....?





I couldn't. When Ivy posted that long essay how the housing crisis happened a few years ago, I was wishing I had a few Valium to pop after reading a fourth of what she wrote. All i know its full of math and algorithms that ain't funny.
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Reply #7 posted 05/20/17 6:01pm

damosuzuki

domainator2010 said:

(why does it take RICH people to get richer? Why can't average dicks do it?)

plenty of average people do it, even if it's only through work pension funds or whatever. i'm by n means a financial heavy hitter, and i make no claim to have expertise on the stock market or the broader economy, but i've always saved as much as i could, and i've always invested it, pretty conservatively, and it's worked out ok. there's risk in it, of course - perfection is not for this world, but i expect the biggest risk of all would be to not have a plan or investment strategy of any kind.

.

it could be the case that we've built a house of cards & it will topple any second. i doubt that's so, but who knows...but if that happens, then i guess we'll all be out in loincloths hunting feral animals. until that day, saving as much as you can and having diversified, modest investments is very likely a good game plan.

[Edited 5/20/17 18:17pm]

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Reply #8 posted 05/20/17 6:44pm

luv4u

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Cerebus said:

Buy low, sell high.



yeahthat

canada

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Reply #9 posted 05/20/17 9:44pm

Pokeno4Money

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domainator2010 said:

why does it take RICH people to get richer? Why can't average dicks do it?


Mostly because rich people have more money to play with, and can afford to take risks.

If the average Joe has only $10,000 to invest, and the rich guy has $50,000 to invest, the rich guy can spread his money out more and he can afford to put a lot of it in high-risk, high-reward stocks.

Like the saying goes, it takes money to make money.

"Never let nasty stalkers disrespect you. They start shit, you finish it. Go down to their level, that's the only way they'll understand. You have to handle things yourself."
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Reply #10 posted 05/20/17 11:18pm

domainator2010

XxAxX said:

the stock market is a very, very bad joke. if everyone with investments in the market right now, today, called in their notes and said 'gimme all the cash i'm entitled to, turn all my shares into dollars" the market would crash because there simply isn't enough actual money to back all of the outstanding 'shares' in our 'accounts'. the 'money' is fictional, speculative, and the banks too big to fail are trading in the wackiest speculative shit like 'derivatives'. again. like back in 2008 when a bunch of crooked bankers and real estate brokers decided to sell their fucky failure-prone adjustable rate mortgages as 'asset-backed securities' on the market it screwed things so badly our country had to fucking give money to those crooks to cover the shortfall. and regulations which should have been put in place to make sure those same banks and investment brokerages were playing by the rules still don't exist. the stock market is the financial wild west, the final frontier, a big fat capitalist roll of the dice that enables rich people to grow immeasurably richer on paper without ever lifting a finger to do any real work and without making any contribution at all to society. worst of all (or best, maybe) is that the stock market will fail again, without a doubt. the entire concept is built on faulty reasoning and greed and the players are still playing us all. wtf is a 'derivative' anyway? betting on the future and making a dime if you guess right? wtf is that? not quite the sound and stable foundation we need to build an economy on is it? i know i sound like a weird old fart and there's a good chance i am. biggrin but, i think we will live to see another 1930s style massive financial meltdown. and what will happen to our 401Ks when this all melts down? are we too big to fail? neutral



bah. that's how i see things anyway. confused so imo if you wish to invest maybe think of buying art which will increase in value so buy a Banksy. buy jewelry which hopefully will do the same. consider buying a few acres of land and planting crops to yield in ten years. build a house. find a promising young person and invest in their future. buy gold. just my 10cents





OK - are you like, a financial professional or something??
Explain me this - if Lay's has to build a new factory to make millions more packs of chips, if I put in 10 bucks into buying their stock - does that money go to finance the new factory?? THIS is what I can't understand - it all seems IMAGINARY!!

And btw, fuck all that house and gold shit - you're talking like almost an Indian old person!! smile The NEW opportunities are in Bitcoin (from what I understand - check for yourself), and this kinda thing: www.seedrs.com and www.crowdcube.com - *these* 2 in particular may be UK only though sad

What's a "Banksy"?

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Reply #11 posted 05/20/17 11:27pm

purplethunder3
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Image result for stock market  meme

"Music gives a soul to the universe, wings to the mind, flight to the imagination and life to everything." --Plato

https://youtu.be/CVwv9LZMah0
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Reply #12 posted 05/21/17 7:23am

Horsefeathers

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domainator2010 said:


sad

What's a "Banksy"?


A popular anonymous graffiti artist.
Murica: at least it's not Sudan.
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