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The Stock Market was down today amid rumors that the stock market might go down. Sounds like a friggin' self-licking ice cream cone to me. Why not just everybody pretend like the stock market is going up and it will go up for real?
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Aug 24, 2015 14:02
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| # ? Apr 27, 2024 02:42 |
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Buy when ur feeling low, sell when ur blazin high
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Aug 24, 2015 14:04
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That's more or less what we had before, hth.
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Aug 24, 2015 14:12
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So, when a company makes more profits, its stocks go up, even though only a small number of companies actually have profit sharing for shareholders. Why would the stock otherwise be worth more?
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Aug 24, 2015 14:14
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Because stockbrokers are rational actors to a fault.
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Aug 24, 2015 14:18
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Applewhite posted:Sounds like a friggin' self-licking ice cream cone to me. What's the part you don't understand? Stocks, like anything else, are worth what someone is willing to pay for them. Sometimes people panic, and when they panic, they scare the poo poo out of each other. Right now everyone is running around screaming like they are on fire.
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Aug 24, 2015 14:18
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Actuary X posted:What's the part you don't understand? No I understand that aspect of it. What I don't understand is, if the value of the stocks is purely imaginary, why we don't just wish the stock market higher.
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Aug 24, 2015 14:22
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the stock market relies on confidence., You need to read my StockmarketPUA blog #mensrates
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Aug 24, 2015 14:23
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Applewhite posted:So, when a company makes more profits, its stocks go up, even though only a small number of companies actually have profit sharing for shareholders. Why would the stock otherwise be worth more? you own a piece of the company, so if the company does well, the value of the thing you own increases. then other people say "boy howdy i want some of that, it sure is valuable" and so they want to buy that thing, and you can sell it to them for more than you bought it for.
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Aug 24, 2015 14:23
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Applewhite posted:No I understand that aspect of it. What I don't understand is, if the value of the stocks is purely imaginary, why we don't just wish the stock market higher.
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Aug 24, 2015 14:23
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Applewhite posted:No I understand that aspect of it. What I don't understand is, if the value of the stocks is purely imaginary, why we don't just wish the stock market higher. the point is to make money. if you buy a bunch of stock at high prices to drive the price up, that's fine, but if it doesn't actually go up long term then you'll lose money when you sell
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Aug 24, 2015 14:24
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Actuary X posted:That is where bubbles come from. You say "bubble" like it's something illusory or hollow, but I don't see how that's differentiated from anything else that occurs in the stock market. You might as well describe depressions as "reverse bubbles" because they're just as artificial.
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Aug 24, 2015 14:26
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Applewhite posted:You say "bubble" like it's something illusory or hollow, but I don't see how that's differentiated from anything else that occurs in the stock market. You might as well describe depressions as "reverse bubbles" because they're just as artificial. think about the dutch tulip thing. tulips do have value and they basically always will because people like flowers and tulips are cool. there's nothing illusory about that. but people were paying way loving more for the tulips than it would make any sense for them to be worth in the long term. that's basically a bubble.
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Aug 24, 2015 14:29
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yes but hte stock market understands you
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Aug 24, 2015 14:33
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The price of a stock is what it is agreed to be, but a stock actually has a certain value (although that value can only be estimated). That value is the present value of future dividend payments and the proceeds from selling the stock at some future point. If you think a stock is a good buy, that means that your estimate of that return is higher than you could get from other sources (e.g., T-bills or other stocks). It is not completely imaginary. Prices will tend to gyrate around that (generally agreed) value. Sometimes they move pretty far. Sometimes the agreed estimated value changes rapidly because of external conditions that effect what you would expect to get from that stock (e.g., rapid change in the price of oil).
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Aug 24, 2015 14:36
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what flavor of ice cream op
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Aug 24, 2015 14:37
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logical phalluses posted:think about the dutch tulip thing. tulips do have value and they basically always will because people like flowers and tulips are cool. there's nothing illusory about that. but people were paying way loving more for the tulips than it would make any sense for them to be worth in the long term. that's basically a bubble. Right but the value of tulips is determined by the fact that people buy them to look at. The value of stocks seems to be determined by circular reasoning. Actuary X posted:The price of a stock is what it is agreed to be, but a stock actually has a certain value (although that value can only be estimated). That value is the present value of future dividend payments and the proceeds from selling the stock at some future point. If you think a stock is a good buy, that means that your estimate of that return is higher than you could get from other sources (e.g., T-bills or other stocks). So if you own stock in a company you get paid dividends?
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Aug 24, 2015 15:05
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CISMALES DID 9-11 posted:what flavor of ice cream op Spaghetti.
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Aug 24, 2015 15:05
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what!!
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Aug 24, 2015 15:05
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I'd try it
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Aug 24, 2015 15:06
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Applewhite posted:Spaghetti. spaghett!
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Aug 24, 2015 15:11
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I like how the news follows the stock market constantly and yet like 1% of the population if that even cares or deals with it. gently caress rich people
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Aug 24, 2015 15:13
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Applewhite posted:So if you own stock in a company you get paid dividends? Some pay dividends yes. Others you're just buying and holding with the hope that someone will see it as becoming more valuable to another person in the future with it's likelihood of becoming more valuable to someone else in the future. It's pretty simple. You can also vote to direct some company policy and action but unless you hold a massive percentage of the shares it doesn't matter.
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Aug 24, 2015 15:17
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poorlifedecision posted:Some pay dividends yes. Others you're just buying and holding with the hope that someone will see it as becoming more valuable to another person in the future with it's likelihood of becoming more valuable to someone else in the future. It's pretty simple. You can also vote to direct some company policy and action but unless you hold a massive percentage of the shares it doesn't matter. "This stock is worthless to me, because I don't get any dividends from it, but you should still pay me a ton of money for it because it's probably worth something to somebody. and even if it's not, they might fall for the same story I got you with."
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Aug 24, 2015 15:19
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Roy posted:Buy when ur feeling low, sell when ur blazin high 9/11 blaze it erryday
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Aug 24, 2015 15:20
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This explains the stockmarket well https://www.youtube.com/watch?v=ZiJa9diJOMk
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Aug 24, 2015 15:20
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Applewhite posted:"This stock is worthless to me, because I don't get any dividends from it, but you should still pay me a ton of money for it because it's probably worth something to somebody. and even if it's not, they might fall for the same story I got you with." Welcome to the Republican party son.
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Aug 24, 2015 15:21
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imagine fo re balls on the edguu of a clidd
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Aug 24, 2015 15:22
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I think I'm beginning to see why our economy is so hosed up.
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Aug 24, 2015 15:22
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Do cocaine and jerk off several times per day
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Aug 24, 2015 15:24
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Applewhite posted:So if you own stock in a company you get paid dividends? If you own a share that costs $5 and there are rumours (or announcements) that the dividend will be 6 cents per share, then you can sell your share to somebody for $5.06. That's $5 for the share and 6 cents for the future rumoured dividends. If later when it comes time to announce the actual dividend it turns out that the dividend will be only 4 cents per share the MARKET WILL CRASH by which I mean that everyone with that share will attempt to sell it for $5.06 and then buy it back for the true value of $5.04. Otherwise they can hold onto it and "lose" 2 cents per share. They're not really losing it until they sell it, but the value of the share has decreased. This is why a company can report AWESOME PROFITS and then every starts to sell their shares in the company as fast as they can. People get surprised. "WHAT THE gently caress? THEY JUST DID AWESOMELY???" Well, problem is the whole market was expecting them to do SUPER AWESOME and they only did ordinary AWESOME, so sell that overvalued poo poo as fast as you can, buddy.
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Aug 24, 2015 15:24
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Applewhite posted:I think I'm beginning to see why our economy is so hosed up.
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Aug 24, 2015 15:24
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The stock market is kind of like an elaborate circus that really rich people put on to distract you while they steal your taxes and plunder your retirement funds.
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Aug 24, 2015 15:25
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https://en.wikipedia.org/wiki/Keynesian_beauty_contest
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Aug 24, 2015 15:25
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The only true value in this world is in video game collector's editions.
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Aug 24, 2015 15:27
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Applewhite posted:I think I'm beginning to see why our economy is so hosed up. Capitalism sucks bro.
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Aug 24, 2015 15:28
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i only buy stocks that pay dividends and dont plan on selling any so all of this going on just means i should buy more
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Aug 24, 2015 15:30
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Some people use really fast computers to make purchases every nanosecond so other people can't compete with them.
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Aug 24, 2015 15:32
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Frabba posted:Capitalism sucks bro. The stock market seems to be a whole separate entity from capitalism proper. Capitalism is the idea that the value of goods and services should be determined by demand, rather than by government fiat. Seems pretty reasonable to me. The stock market works on capitalist principles but instead of trading money for goods and services, they trade it confidence, making it more akin to gambling than trading imo.
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Aug 24, 2015 15:33
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| # ? Apr 27, 2024 02:42 |
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Applewhite posted:The stock market seems to be a whole separate entity from capitalism proper. Capitalism is the idea that the value of goods and services should be determined by demand, rather than by government fiat. Seems pretty reasonable to me. The stock market works on capitalist principles but instead of trading money for goods and services, they trade it confidence, making it more akin to gambling than trading imo. Basically yeah. So are you playing or not?
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Aug 24, 2015 15:35
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