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Does anyone actually understand how the economy and the stock

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Does anyone actually understand how the economy and the stock market and all that stuff actually works?
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>>35044398
Buy low sell high short stocks so people kill themselves.
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the stock market is a fugazi
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>>35044398
its just a bunch of numbers that old dudes control through magic or something.
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Yes but it's not public information. Anyone that has ever figured it out keeps it to themselves so they can make millions.
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>>35044398
what do you want to know specifically? There's a lot to it, and people only learn the parts they need to make it work for them (or go broke because they're retarded dumbasses)
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>>35044398
The stock market is very much based on human emotion, so it can be extremely nonsensical at times.
Sometimes for no logical reason stocks can rise or fall in price.
If someone were to master how human emotion works they could make a killing
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>>35044469
please tell me anon, I honestly dont deserve it and my life is getting worse everyday.

Suicide seems like an increasingly better alternative to prolonging my life.
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>>35044554
I don't think he meant that he knew it, otherwise he wouldn't be perusing /r9k/
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>>35044554
literally put everything you own into the first thing that someone tells you to put your money in.

you'll either make it big or you won't have to worry about any loose ends when you end your existence.
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>>35044398
They have been taken over by AIs years ago, no one actually knows how they work now.
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>>35044398
yea i do, do you have any questions
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Buy high sell low and rape your daughter you filthy kike
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>>35044480
>>35044608

>what do you want to know specifically

OK here is something I was thinking about recently.

So, in the stock market, companies have an IPO - initial public offering when they first list their company on the stock market, right?

In this IPO they cut up the company into little stocks and keep a bunch and list a bunch for the public to buy and this is how the company makes money - that's the benefit of being public.

But after the initial public offering, what benefit does a company have of being public? It seems that they are under many more regulations and inside the public eye which is probably cumbersome I imagine.

Because if they only get money from the IPO when they initially sell stocks, then it's pretty much worthless for a lot of companies, what if you need money 5 years down the road? It's not like you can IPO again. Do they ask their shareholders for investments?

And if they did that, shreholders wouldn't really make money from their stocks because they would be paying for the company.

I do know that SOME companies pay dividends - but as far as I am aware this isn't common. So where is value generated in the stock market?

Also just the whole gold standard thing kinda confuses me too. And coins. Why don't they embed lines of precious metals into dollars so they are backed by value like coins are? Since the government keeps trying to make the dollar coin popular for some reason, why don't they just put the metals into the dollar?

If I think of any other questions I had I'll ask you
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>>35044548
>The stock market is very much based on human emotion, so it can be extremely nonsensical at times.
>Sometimes for no logical reason stocks can rise or fall in price.
>If someone were to master how human emotion works they could make a killing
why would they keep this shitty system around???
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>>35044679
You understand a lot already.

Just because an IPO happens only once doesn't mean it's not worth anything. Facebook raised 90 billion dollars. It really is significant money even though it only happens once.

After 5 years the business should be able to make money on their own. If they didn't have a valid plan to do this then they wouldn't have raised any money in the first place (except for snapchat maybe, lol, this one will prob be a disaster!)
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>>35044597
>>35044598
honestly I feel like the final thing that is going to push me over the edge, to where its not worth living anymore is fast approaching.

I have a long list of problems but the most recent ones are my teeth have started to hurt and then yesterday one of my front teeth chipped really badly, now if I so much as touch my tongue or lips its super sharp. Ive already caused a lot of inflammation and bleeding because of it.

I also have one side of my mouth I can't even eat on because it hurts.

I don't know why I was born honestly, I have taken so many drugs my entire life to deal with cluster headaches and I feel like my mouth being so dry and also vomiting from the pain has caused this.

I don't even want a normal or great life I just wish that I could have a reprieve from the torment that is living for me.

Actually though, the moments when I take a lot of drugs and lay in bed, dozing off to my fantasies of actually being useful to people for a change, or when i'm asleep, I think i'm happy then. So I guess I do have some moments where everything isn't awful.

But at the same time its very human of me to want more of those moments isn't it?
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>>35044962
Are you in the wrong thread anon?

wtf are you doing here?
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>>35044679
>I do know that SOME companies pay dividends - but as far as I am aware this isn't common. So where is value generated in the stock market?

there's also buybacks (the company buys its own shares off the market, reducing the # of shares and raising the price), or expectation of future dividend. the stocks that don't pay dividends have extra money available but are generally reinvesting it in the company to grow.

money is fiat, we do not use the gold standard. actually, extra money is created whenever money is lended out - this is mind blowing. i can't explain it well, but look up fractional reserve banking. basically each loan increases the money supply because the money being paid in interest doesn't exist yet.

all you really need to know is save 10%-50% of your income and invest in VTI on an automatic schedule, don't touch it ever.
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>>35044679

>what if you need money 5 years down the road? It's not like you can IPO again.

they can sell more stock. it's called a secondary offering.

being public generally makes it cheaper to raise money. having your information publicly available and being SEC regulated makes you a lower perceived risk for lenders.

the other primary benefit of being public is that the stock market is a form of advertising for your company. people talk about your products and services a lot, because it can push the stock price up or down.

but, in general, being public sucks.

the larger issue is that today's companies don't really need capital now. 50 or 60 years ago, ford was building factories - it was very expensive, there was a lot of reason to raise a lot of money. nowadays, the main reason they IPO is to cash out the earlier venture investors. no one is actually raising money to fund some new exciting investment or project.

this is the single biggest thing that will reshape the markets over the next 50 years - there is simply way too capital competing for fewer and fewer (and smaller and smaller) investments.
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>>35044978
I don't know anon. At first I opened this thread because I was slightly interested and then I made a post.

I've had a very bad last couple of days and I needed to do something besides lay in bed and cry.

I don't even know why I bothered typing this out or thought anyone would care.

The best thing I can do now is go so i'll do that. If you or anyone else happens to read this though, do you think its a good thing to kill yourself if you honestly feel like you only make the world worse by living? Maybe I can muster up the courage to kill myself if I think of how quickly the world will be better when i'm dead.

Sorry for wasting your time though anons, I know you will probably never believe me but I really do feel bad about wasting it, I hate being a burden even to internet strangers. I hope each of you lives a happier life from this moment forwards, I know all my hope is just useless but maybe it will help someone.
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>>35045227
I'm sorry anon. For what little it's worth I've felt the same way. Get some sleep or go for a walk. Hope you find peace.
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>>35045227
well if you really want to kill yourself there is nothing that anybody can do really
you dont have to worry about being a bad human most people are
there are so many people just making the world worse that it doesnt really matter if there is one more or one less
to give you some perspective you could try to find your place in the world and try to be content with it
even if youre gonna be the homeless man picking up trash
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>>35045227
I'm sorry I was so rude anon, this thread is as good as any to get all this out I suppose. Sometimes talking things over with others can be very good for your mental health.

My advice to you is that you need to realize many are feeling just like you are now.
You are a 20 something, maybe teen-something, and you DON'T NEED to have any accomplishments.

You don't owe anyone anything.
You don't owe the world anything.

Remember that it's OK for you to rely on others, and some people would really wish that you did rely on them more right now when you are going through these times.

You didn't waste my time anon. I enjoyed reading your posts and I want you to have a happy life. If you are still here I would love to talk to you more anon.
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>>35044990
I have an ETF following the S&P 500. Is that good?
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>>35044990
>money is fiat, we do not use the gold standard. actually, extra money is created whenever money is lended out - this is mind blowing. i can't explain it well, but look up fractional reserve banking. basically each loan increases the money supply because the money being paid in interest doesn't exist yet.

Yeah, currency is a pretty confusing subject as well, I have a lot of questions about this, I don;t think many people actually understand how currency is controlled or valued

So I go to India sometimes and the rupee is worth around 50c or something like that. Most developing countries generally have currency which is less valuable than more developed countries.

Why is this? It doesn't make sense to me because the value of a currency is a fairly arbitrary amount, is it not? If India made their official currency the kilorupee which was worth 1000 rupees than the exchange rate would be 1 kr to 50 dollars instead. So why is there a pattern where poorer countries seem to prefer having lower values to their currency?

I kinda got an answer to this question when my brother went to Azerbaijan once and he told me that Azernaijan has only reprinted their money twice in history.

And other countries get really mad at them for this and the world bank is encouraging them to print more but for some reason they don't - how does this affect anything, it's not like it matter if a loaf of bread in azerbaijan costs 10 manat or 100. Becuase the exchange rate isn't affected.

obviously I don't know too much about this
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>>35045331
I don't really know if I would say that i'm a bad human. I try not to think about it much but when I seriously think about my life I realize just how much i've been given, either from family who have tried their hardest to make me happy even though i've always had headaches and cluster headaches, sometimes reaching up to 4-5 days a week where my eye will even swell up, and my head hurts more than anything else I can possibly describe. It's like constant pain that burns and throbs and radiates out. Finally giving way to just this aching tiredness. Sometimes it plays out differently with me vomiting or taking all sorts of medication or stabbing myself in the leg with injections.

>>35045272
Part of me really wants to believe peace is possible, that if I try and really dedicate everything I am to it, then I can somehow just be like some sort of buddhist monk, where no pain can phase me. Its so much though and I continually find that i'm just not strong enough.

>>35045445
I'm a 20 something and it's not about owing anyone anything, its about wanting to do anything but suffer, its about wanting to feel like I can have people to rely on and talk to and hang out with. I honestly feel like i've tried really really hard, my family when I was in my mid teens basically just gave up on me and my mom tried and still does give me money for anything I want, she goes with my stepdad to lots of parties and does whatever she wants. Then when she wants she makes a lot of money by basically just talking to people, gossiping and selling shit to people that already have more than they know what to do with.

My mom after lots of doctors, told me she loved me and she always would, but there's nothing more anyone can do for me unless there's some major breakthrough or surgical procedure. She told me to try and be as happy as possible and she would always try to help. Which was a very nice touching moment, she has a hard time actually being there for me outside of the speeches.
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>>35044679
>Also just the whole gold standard thing kinda confuses me too. And coins. Why don't they embed lines of precious metals into dollars so they are backed by value like coins are? Since the government keeps trying to make the dollar coin popular for some reason, why don't they just put the metals into the dollar?

that would limit the number of dollars they could print, and would make it possible for people to disassemble money for the precious metals. In the future, they would have to put less valuable metallic strips in the money because of increased money supply, making older bills worth more. This happened with coinage in Rome.

Most of the money supply is electronic as well, if physical money had more value than electronic money, then people would run banks to cash out.
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>>35044753
>why would they keep this shitty system around???

Because the people who make money off of it, control the people who make the laws.
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>>35045816
I never actually get to talk to her, she knows i'm pretty much worthless and anything I say is equally so. Any conversation I have with her is either with her on her phone doing something else while I just talk or with her on her computer doing something else while I talk. Although I guess I don't really have anything important to say, its just me having a pity party.

In high school and the times ive attempted college ive really tried to make friends, but its hard when so regularly I just make it all stop. No one wants to be around someone that kills all the fun or comes along only to leave halfway through all of it.

But I can't even be a regular or keep a schedule for simple fucking things like raiding in wow. I even tried really hard with just being interactive in that and its the same exact fucking feeling knowing everyone wants you to come along to good times but your body makes you feel so miserable all you can think about is making the pain stop.

I used to think that at least, at the very least I was cute, I like both boys and girls and I guess I would take either if it meant I could have someone that would be there for me. I'm only 5'4 and i've at most in my life weighed 115 pounds.

I thought that maybe, just maybe I could have this one thing going for me.

Now after a particularly bad episode, complete with vomiting and me stumbling around, I somehow chipped my front teeth, my teeth have hurt me for awhile and its no mystery really because medication making your mouth dry + acidic stomach vomit, will destroy your teeth.

I feel like the very last thing I had has been ripped away from me, ive already looked up dental implants but I dont have any idea what I should do or even if dental implants are a good choice.

I dont know what to do with my entire life though and so I guess it just fits right in with everything else.
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>>35044679
A company can only make one INITIAL public offering, but they can and sometimes do issue more stock down the road. In general though this is fairly unusual for two reasons. The first is that the current shareholders typically object on the grounds that the existing shares will see their value diluted. The second and more important reason is that equity issues are extremely costly. Investment banks often walk away with 15% - 25% of the value of the company in exchange for staging the public offer. In almost all cases a company that needs more money would rather sell debt than equity.

Public offerings do have two key advantages. They can raise huge amounts of money, often way more than could feasibly be made selling bonds. More importantly they offer a way for a company that doesn't have access to debt markets to raise money. This is why they are used to provide early funding to relatively young companies. They give this company that isn't established enough to borrow huge amounts the ability to still raise very large amounts of capital.
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>>35045569
Yes, probably the best investment you can make to be honest.
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>>35044398
Stock market:
Companies sell parts of their company that you can profit off of. People have kind of turned it into a gambling trading game, though, because the prices of stocks go up and down. You now don't buy stocks because you like the company. You buy stocks, because you think it will be worth more if you wait some time after buying it, so you can sell it for a higher price. If it is worth less, though, you lose money.

Economy:
Its just buying and selling shit. As products become more and more valuable and more and more people start selling that thing, it creates what's called a bubble. Eventually too many people are selling that thing, and the value of the product goes waaaaay down, causing a crash, and people lose a bunch of money.
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>>35045785
There are two distinct concepts that you should separate. One is the real value of a currency, i.e. how much you can buy with it. The other is the exchange rate of that currency, which is essentially its price. How many dollars would you need to pay to buy one unit of the foreign currency. This is set like the price of anything: through supply and demand. The dollar is one of the strongest currencies in the world because the demand for it is very high. People want dollars because they want to buy American exports, they want to invest in American securities, etc. Because so many people want dollars the price of the dollar on ForEx markets is pushed upwards.

A government, or more properly a central bank, can influence the price of a currency in two ways. One would be to lower the demand for it. For example, the bank of Japan can lower interest rates, making investments in Japan less attractive. The yen falls as a result. Or, they could intervene on the open market. For example the bank of China could use its dollar reserves to buy lots of renminbi. As a result the price of the renminbi increases. It's just supply and demand.
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>>35044548
>The stock market is very much based on human emotion

fucking bullshit if that was true women would be successful investors because they rely on "feeling".


http://blog.wallstreetsurvivor.com/2016/07/11/famous-investors-what-you-need-need-to-know/
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>>35044398
>>35044962
>>35044978
>>35045331
>>35046055
I don't know if you're still here Anon but for what it's worth nothing you said is your fault. You are not responsible for the crap that's been handed to you. You are not to blame. You didn't ask for this. It's not you're fault. It sounds like the people around you have failed you. People act like social justice warriors on their social media accounts but fail to be decent people in their own lives. Many people here share your sentiments. We are all social outcasts for one reason or another.
I know it doesn't help but I really feel for you and your situation. I don't know how to help you though. I don't think anyone here does. If there is anyone in your life who you can turn to, anyone you can trust then I'd ask that you seek them out. Failing that their should be some other resources if not in your community than somewhere online.
Please don't think of yourself as a burden to anyone online or in real life. Don't be afraid to be vulnerable, to express how you feel and what you're going through. If it seems that the people around you don't know or don't care they need to know and they should care. Don't stop until they start caring; until they start acting like human beings. Never give up. Keep trying.
I know I'm not a good writer but I just want you to know that someone cares and that you deserve better. I'll pray for you anon and I hope things get better.
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>>35047160
>fucking bullshit if that was true women would be successful investors because they rely on "feeling".
yeah honestly I think that guy doesn't know what he is talking about

the stock market may respond to market trends which are often based off public perception and emotion but virtually no investors are just like "i'm feeling kinda sad let's buy some boeing stock"
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>>35044679
>Also just the whole gold standard thing kinda confuses me too. And coins. Why don't they embed lines of precious metals into dollars so they are backed by value like coins are? Since the government keeps trying to make the dollar coin popular for some reason, why don't they just put the metals into the dollar?
It would ramp up the cost of making money while not really doing much. Also, with electronic money so prevalent in our economy it doesn't really mean much.

The gold standard is something of a meme for developed countries. The most successful period (Breton Woods, 1948-1971) wasn't a "real" gold standard, it was just a system of capital controls. It eventually collapsed as people speculated on the USD vs Gold. (This had been predicted in advance, and the original Breton Woods proposals would have created a special international accounting unit instead of using the USD.)
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You don't need to. The real way to profit from stocks is to write up fake "secrets to understanding the market" seminars and charge exorbitant prices and lure in foolish traders like my parents.
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We're robots, we're not retarded
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Finance professional here. I have a pretty good understanding of how it all works. That does not, however, translate into me being able to get wild profits from trading.
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I really regret not buying AMD stock a year or two ago despite anticipating Zen (now the Ryzen) all these years.
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