[fraze]

Originally Posted by uh-oh

Yo so the stock market never made sense to me.

If i dont have money invested why does it affect me? Because my bank or something? Like they have money invested or something so if they take a hit they lose my money? Like explain that in simple terms i never got it
Yes that is one of the effects. Banks want you to give them your money to keep precisely so they can do things like make money in the markets. Most banks have an investment banking division that tries to spend your money to make more, all before you ask for anything back. So if the stock market crashes losses in these divisions could affect balances in other areas. But assuming youre at a FDIC insured bank and have less than ~$250k saved the government will bail you out for any losses of this nature. This is why banks are supposed to keep a certain balance of cash reserves, but at this point a lot of this money has been leveraged so much they my only have a percentage of the actual amount that's on the books.

This is also important because companies that you depend on are listed on the stock market. If their stocks crash they might go out of business, increase the prices for their services, lay off employees (possibly you), or any number of other generally shitty outcomes. The economy is tied up with the stock market, so when stocks crash the unemployment rate usually increases and inflation can jump in either direction depending on fiscal policy.


Why put any money into it at all? I get you can make money somehow but i mean it all seems like witchcraft to me.
Its pretty straightforward actual. A company tells you they have a opportunity to make a certain amount of revenue over the next X months, but they need Y dollars to execute their plan. You give them some money in exchange for a piece of the business (stock), and if they are successful they make that money. At this point they either give you a kickback (dividend), or enough other people have noticed their success and will buy the stock from you at a higher price than you paid so you make a profit. If the company doesn't do well, you'll only be able to get a low price for that stock and you'll end up taking a loss. or you could just hold on to the stock and use your ownership of it to influence the direction of the company (voting).

Also bear in mind i think i died 37 monutes ago. I felt a minor pop in my chest and i got light headed and went to lunch. Now i feel stoned. I ate a couple salami sandwiches and smoked a few cigs and just drank a fi e hour energy. Im also typing this post so i must be alive. The world feels fake tho. Either my heart burst and this is the afterlife. Or maybe i had like a bubble of lung tissue full of thc and when it popped i got high.
You might want to see a professional about this. Possibly several.

But word stocks and shit. How does it work. Also magnets
Magnets manipulate the natural electrical fields in certain kinds metals to change the orientation of their atoms according to the polarity of the magnet. All of the atoms lined up inside the metal become strongly polarized (builds up negative charge one side and positive on the other), so you see a magnified example of the same type of bonding that holds sodium to chlorine in a salt molecule (ionic bonding - aka bonding through charge differences)