Gaming World Forums
General Category => General Talk => Topic started by: Frisky SKeleton on October 11, 2009, 06:58:33 am
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how do stocks and shares work? is the only way to get profits from them to buy low and sell high, and is the dollar value of the stock related to like, the real value of the company or is it all based off of demand? it seems completely made up! why would anyone want shares in the first place? do they represent loans that accrue interest? if you invest with any company that makes a profit do you make a profit or only if demand for the shares rises?
i'm completely lost! all you buisiness majors can come in and show your skill (knowledge about how the stock market works preferably, not how many beers you can drink)
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buy! sell! buy! sell! nasdaq!
Have you ever played Pit (http://en.wikipedia.org/wiki/Pit_%28game%29)?
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no
also how do you get them? do you have to go through a broker or can you plug into the market directly?
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It goes like this first you buy a lot of 3M shares then you start the pig flu hoax
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Here is the knowledge I learned in my senior year of High School.
It basically is a supply/demand thing. The more people buying shares == more the share is worth, the more people selling shares == less the share is worth.
You can buy shares solo, I think yahoo offers a service for it, or you can go through a business who solely buys/sells stocks for you. You give them money and they invest in what they believe would maximize your profit (of course they take a share)
It really is kinda stupid but I have a friend who invested in apple a few years ago and if he sold now he could potentially make over a thousand dollars on his original investment so maybe it is a thing to do if you understand how markets work?
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don't do this
make an honest living and save your money don't do this
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Or you could sell drugs and hold up liquor stores and still be a better member of society
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Here is the knowledge I learned in my senior year of High School.
It basically is a supply/demand thing. The more people buying shares == more the share is worth, the more people selling shares == less the share is worth.
You can buy shares solo, I think yahoo offers a service for it, or you can go through a business who solely buys/sells stocks for you. You give them money and they invest in what they believe would maximize your profit (of course they take a share)
It really is kinda stupid but I have a friend who invested in apple a few years ago and if he sold now he could potentially make over a thousand dollars on his original investment so maybe it is a thing to do if you understand how markets work?
yeah i understand this supply and demand stuff but what's it based on originally? ownership of capital? i don't know why there'd be any demand at all, or why a company would want to be publicly traded
also this isn't any different than putting my money in the bank and having them ride the stock market for me at a much lower return. i dunno looking over numbers and stuff, one went up 10 cents from yesterday. does that mean if i bought 1,000 shares yesterday and sold them today i'd have made $100 in a day?
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one went up 10 cents from yesterday. does that mean if i bought 1,000 shares yesterday and sold them today i'd have made $100 in a day?
essentially yes.
also this isn't any different than putting my money in the bank and having them ride the stock market for me at a much lower return.
not really but its riskier so the return is higher. its essentially gambling
what's it based on originally? ownership of capital?
no clue.
why a company would want to be publicly traded
well I'm pretty sure it is so the company can raise money? Basically if other people buy shares in your company they are kinda paying for some of what you're doing so it lessens the load of the actual company.
This is probably all I know about the subject so maybe someone who is actually a business major should step up and help climbtree out? Heh...I'll go ask some business students around campus...
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//I don't know much about the stock market
From what I understand when you buy shares you are essentially loaning your money to that company, only there is no guarantee that you'll actually get it back (ie the company goes under), but if the company does well then your shares (read: loan) gets paid back with some interest.
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yeah i'm fairly unaware of how dividends work into it. are they given in cash or does it just boost the value of the shares or what? if you trade a lot do you get a pittance from each share you held for a couple days?
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Stocks are a way for businesses to gain capital by selling off fractions of ownership in the company. I bet Wikipedia could give you a better idea of exactly how it works than myself, since I'm a computer science major, not finance. :)
Apparently though, if you work at a company long enough they might give you stock options, i.e. you can buy up to X number of shares for a fixed price for Y years. So say you get options to buy 200 shares at $5, then 5 or 6 years later the stocks rise to $10, you could put in a transaction for any number of shares (up to 200) to buy and then immediately sell, with no risk or even cash down.
Apparently stock options are the way to go. :) But you have to work a while at a company before they're likely to give them to you.
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lool fuck stiock options they offered me that atw almart while paying me minimum wage and exploitin the hell outta me
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the values all change by the hour, how does buying and selling work with speed?
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the stock market, is like a pool at a country club. it's open to the public, but there's a separate area for members and rich people. they have 2 diving boards, i'll let you guess which is better. The filters tend to be cleaner on the members' side of the pool, although the water is pretty much the same because it's all connected. now, they have people going around serving food, but there are 2 menus and neither have anything really very good but you figure "well we are at the pool." And if you like towels, you better be a member because they get all the white ones and all the public towels are gray-ish and have stains on them. Most of the time they just burn your eyes and skin when you use them because they are soaked in chlorine and improperly washed. The pool closes at 8 to the public but from 8-10:30 it's open to members and they turn the lights on and serve alcohol.
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please clarify what items are analagous to in your example please!
if you buy stocks right before a dividend date, do you still get dividends?
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let me just say that my post was bullshit it was just a joke i hope nobody tries too hard to figure it out.
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in high school economics I made the most fake money with the fake money I invested and I won a free lunch