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BiggleMan
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| Joined: 02 Sep 2013 |
| Total Posts: 20418 |
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| 10 Aug 2016 12:44 PM |
| i've asked my dad about them so much and i'm still confused |
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xBBLox
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| Joined: 10 Jul 2014 |
| Total Posts: 4357 |
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| 10 Aug 2016 12:46 PM |
i dont understand socks but i do understand stocks |
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| 10 Aug 2016 12:47 PM |
| I hope I learn about them in accounting |
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| 10 Aug 2016 02:29 PM |
| Imagine a business as a pizza, the size of the pizza is determined by how much money the business has. By purchasing stock you are owning a percentage of the business, and also a percentage of the earnings with it. In our example this means taking a slice of the pizza. And when the pizza/business makes money it expands, along with your slice. So if you buy stock in a really small business, say you get 1%. And now that business makes a lot of money, you still own one percent, but you own one percent of more now. Instead of owning 1% of 100 dollars, you own 1% of a billion, which means you have made money. However businesses make and loose money, this means that you can get a stock, but if the business flops and looses a lot of money, you loose money too. |
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gryphunk2
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| Joined: 04 Mar 2013 |
| Total Posts: 10872 |
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| 10 Aug 2016 02:32 PM |
@shadow_person that's actually a good way to represent it
r+://409813907r+://436385860 R$12 | follow me on twitter @cleaningtheroom \(°—°)/ |
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| 10 Aug 2016 02:36 PM |
@gry. Aww, thanks.
@everyone. You may wonder why a business would sell stocks. It is giving itself away and others are profiting off of it, so why would it do this? Well businesses do this because you have to buy a stock, so that means they make money, and you make money. It is a win win. Also if they loose money, that means of percentage of the loosings are not theirs, they are yours. So stocks are a kind of insurance in some ways. |
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