Market crash, yeah forgot to tell you guys

[Destroyer]

lmao
right? I almost started googling his symptoms and shit

[Ghost1]

Lmaooooo!

[Sharp]

I'm saying we need a Trump/Uh-oh Third Party ticket in 2016

Chyeahhh shows up at the inauguration to say he knew Martin O'Malley had no chance of getting the nomination

[YDK]

Uhoh its relatively easy to understand the basics but in-depth confuses the shit outta me.
You can buy/sell/trade stocks depending on how much they're worth that particular business day. If the stock goes up that means they're worth more and down means they're worth less. So when a crash like this happens it makes whatever stocks affected decrease significantly in worth which usually triggers alot of other people to start selling their own stocks to avoid them being completely worthless.
Now the big problem is that when everybody starts selling the worth goes down further because nobody wants them anyways. So when one area or company goes down alot it can have a chain reaction on a ton of different things. Crude oil is around 40 bucks a barrel so the price of gas should go down some, but when gas goes down other things can go up since they're in higher demand to make up for losts profits.
So basically, if its doing good companies can charge their normal inflated prices to rape us, and when it goes down they just fuck us while we bend over to pick up our Penny's worth of gas.

There's alot of other attributing factors in the prices of every day shit and China's stock market will effect us a little but but not as bad as it would if it were our own crashing. Plus unemployment isn't has high as it was a few years ago when the housing market an stocks crashed so that helps to give us a little more stability
@uh-oh

[uh-oh]

word. i get all that, my main question is like why do people trade in stocks at all. if i run an oil company, wouldn't i dictate the costs of my oil? like i could sell it for whatever i want.

like if wal marts "stocks" take a hit, they still have warehouses upon warehouses of shit to sell. why would they raise prices for instance, to make up for their "stocks" they still got the same shit, its like an imaginary number

i never understood it

the stock markets existence in general

AS FOR MY HEALTH AND WELL BEING, i think i'm fine. i thought maybe a blood CLOT broke free from an artery in my chest and shot into my brain and made me lightheaded

but i think the simple answer, due to the fact i'm alive and experiencing nothing, was i probably just had a rib/chest bone crack or something (not like crack like break, but crack like releasing air or something like when you crack knuckles?) from working like a savage and that little pop, alarmed me causing me to stand up fast from my crouching position, and all the blood fled my brain and into my legs causing me to be light headed.

[Split Eight]

If your company's stocks plummets it implies your company has a poor outlook, which discourages investors from investing in you and discourages other companies from engaging in business relations with you


Imagine in high school, all of a sudden the basketball team decides you're secretly a gypsy because you produce weird music

Now that doesn't change anything about you, or what you do, but that affects how other people interact with you which interferes with your ability to succeed-- the value other people place on you is like a multiplier on your actual value
@uh-oh

[uh-oh]

still sound like malarkey

we should do away with it

like if i start a company, what is the incentive to make it "publicly traded"? is that the right terminology?

but word my thinking is, WHAT IS THE POINT?

thats all i'm trying to figure out. like i see why i would want to buy apple stock in like 1987 or some shit so i could sell it when the iphone dropped or something and make money

but whether i own stocks or not doesn't mean anything right. its not like i own an iphone factory or something

so if i own stocks in the iphone, how does that benefit them? because i bought them? so basically its a way for people to buy nothingness from companies

i dunno

[YDK]

Originally Posted by uh-oh

still sound like malarkey

we should do away with it

like if i start a company, what is the incentive to make it "publicly traded"? is that the right terminology?

but word my thinking is, WHAT IS THE POINT?

thats all i'm trying to figure out. like i see why i would want to buy apple stock in like 1987 or some shit so i could sell it when the iphone dropped or something and make money

but whether i own stocks or not doesn't mean anything right. its not like i own an iphone factory or something

so if i own stocks in the iphone, how does that benefit them? because i bought them? so basically its a way for people to buy nothingness from companies

i dunno

Next time you have some extra money an time, look into buying some stocks. Like go look for stocks that only costs a few cents or even few dollars an buy a bunch of different ones. If any of them hit it big like that Greek yogurt shit you could be rollin in money over night. Good investors look at the small companies as to which ones have the best chance of developing worth, and those are the ones they'll buy a few hundred shares of. You may only spend 200 bucks but if those shares go from .50 cents to 2 bucks you just quadrupled your money for every share you have.
Now the bigger companies like p&g fluctuated a few dollars but if they steadily show an increase over time then your making a profit.
Privately owned businesses and publicly traded businesses have different advantages so it just depends what works best for each one.
If im making 200k a year running my own business but have the potential for 2mill if i sell it to a big corperation that has morr factories to build and distribute my product and they want my to sell to then to be publicly traded hell yeah you gotta good chance of making big money. But if they sell you out to foreign factories you just laid off a lot of your employees in the us. If you had remained private you can make those decisions yourself.

Theres a shit ton different scenarios an reasons to do one or the other it just depends. But either way you company will be estimated at a net worth and the price of your stocks will be determined by that

[fraze]

Originally Posted by Chyeahhh!!!

like I said, it's a domino effect, the market crash is the least of your worries. You've been warned

so you mean this isn't even hinting at some sort of pandemonium inducing calamity?

oh yeah i guess it is just overly hyperbolic cryptic warning that no pandemonium whatsoever should be expected. nevermind carry on.

[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)

[oats]

@uh-oh I hope you don't spend your afterlife on NC, man.


oh I forgot to tell you guys, I predicted 9/11 back in 93 or some shit, told a bunch of friends but didn't tell any of you guys, thought you should know.

[Destroyer]

I knew bags was gonna lose to spaz in the 1-2 this week but forgot to let it be known

[uh-oh]

hey guys i don't think you understand my question. i will shoulder the blame and assume i am not asking it right

i understand how the stock market works in the sense that i can buy stocks and they go up or down over time blah blah

my question is WHY DOES IT EXIST

what benefit is it. if the stock market crashes, why does that affect the economy? what is a stock market crash? is that where every single stock plummets? why did they plummet? why does it matter? i'm gonna buy a cheeseburger at wendys either way

why is wendys allowed to gamble with peoples money? or the stock market in general

wouldnt it be better to do away with it so we don't end up standing in lines for bread? because of some make believe inflation/deflation/crashing of make believe numbers?

and if it wouldnt be better to away with it, why not?

basically how is the stock market beneficial to the nation, not the individual

[oats]

@uh-oh there a lot of social goods related to stock markets and other financial tools. Mostly, it democratizes economic activity, IE it allows anyone to participate in the economy, at virtually all levels.

I'm gonna crib a description from Robert Shiller and say that financial tools (that's what the stock market is, essentially, a man-made tool) are the architectural pillars of accomplishing goals. Also creates a shit ton of jobs, allows counties to cooperate together on a more meaningful level, lots of other peripheral benefits. In short, financial tools are some of the most important social inventions post-industrial revolution.

To be clear, this isn't to say the real effects of allmarkets are all benevolent; as a man-made construction, they need to be properly regulated. Be wary of the rhetoric that market activity is inherently good, rational, just and self-correcting - it isn't (see: housing markets for the past 20 years). But when regulated correctly, stock markets have a widespread benefit to society. There are a lot more details to tangent off into, but that's the big idea. Hope it helped.

[uh-oh]

It didnt really but i appreciate the effort. Maybe its too big of an explanation to get into which is cool. I dont care enough i was more so just looking for clarity as to why it is good.

I mean central banks can be construed as something good socially or whatever. But im not sure i even understand those. Other than they basically make make believe money and control loans and shit and can destroy an economy and or help it

It just makes too much sense for me for them NOT to exist. But i say that from being ignorant as to HOW they help

People should just make goods and sell them. Other people should just loan people money when they know they can pay them back. But what do i know

[Split Eight]

ionic bonding is not magnetic attraction

[oats]

This is the one-liner you need to know: it allows anyone to participate in the economy, at virtually all levels. It gives corporations someone to answer to, the shareholders.

If you're genuinely interested, read Finance and the Good Society by Robert Shiller. Talks a good bit about the history of stock markets (and other markets), why they're important, how they help, and ultimately how they should behave in a "good society."

[oats]

This is a fun, helpful little video about the two basic approaches to macroeconomics (how economies function on a large scale). And it's rapped by the economists most associated with the theories! Yay!

[Witty]

I am also of the belief the stock market is essentialy pointless and something we just made up to fuck with each other.

[Pharaohs Army]

this is a great thread