Difference between revisions of "Talk:2094: Short Selling"
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I've been reading a page on short selling, it's like they're speaking a foreign language. [[Special:Contributions/172.69.70.47|172.69.70.47]] 16:42, 4 January 2019 (UTC) sam | I've been reading a page on short selling, it's like they're speaking a foreign language. [[Special:Contributions/172.69.70.47|172.69.70.47]] 16:42, 4 January 2019 (UTC) sam | ||
| − | It makes sense from what I remember from economics in high school: you buy stocks in advance for significantly above asking price hoping they gain more value before the deal happens, so let's say 1 share of company X is worth 20$ right now. Now I can offer you a contract that I'll buy this share from you for 50$, but on the condition that the deal happens in a week. If the value of the company stays the same, I make a loss; but if the value rises within that week and one share is suddenly worth, let's say 2000$, I make an immense profit. (divide each value I gave by ten and you have the bean/witch/child analogy from the comic) It's basically gambling on the hope that the value of stock rises. | + | It makes sense from what I remember from economics in high school: you buy stocks in advance for significantly above asking price hoping they gain more value before the deal happens, so let's say 1 share of company X is worth 20$ right now. Now I can offer you a contract that I'll buy this share from you for 50$, but on the condition that the deal happens in a week. If the value of the company stays the same, I make a loss; but if the value rises within that week and one share is suddenly worth, let's say 2000$, I make an immense profit. (divide each value I gave by ten and you have the bean/witch/child analogy from the comic) It's basically gambling on the hope that the value of stock rises. --[[Special:Contributions/172.68.50.118|172.68.50.118]] 17:24, 4 January 2019 (UTC) |
Revision as of 17:24, 4 January 2019
It's like he's doing that on purpose to make it extra difficult for this site to explain his comics. :D I at least understood nothing. Fabian42 (talk) 16:19, 4 January 2019 (UTC)
@Fabian42, Ha! Yes, I'm in the same boat with you, It's almost like he follows this formula: 1. Pick a topic that very few understand. 2. Make an analogy that is more complicated than a straightforward explanation. 3. Profit.
I've been reading a page on short selling, it's like they're speaking a foreign language. 172.69.70.47 16:42, 4 January 2019 (UTC) sam
It makes sense from what I remember from economics in high school: you buy stocks in advance for significantly above asking price hoping they gain more value before the deal happens, so let's say 1 share of company X is worth 20$ right now. Now I can offer you a contract that I'll buy this share from you for 50$, but on the condition that the deal happens in a week. If the value of the company stays the same, I make a loss; but if the value rises within that week and one share is suddenly worth, let's say 2000$, I make an immense profit. (divide each value I gave by ten and you have the bean/witch/child analogy from the comic) It's basically gambling on the hope that the value of stock rises. --172.68.50.118 17:24, 4 January 2019 (UTC)
