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Stock Company. Selling something that no one will buy piecemealSo, here we go. Start of the story here . What next? How will he sell something that no one will buy in pieces? He turns his company into a joint-stock company, which is a form of company organization that allows it to be split into shares. Our owner issues 1 million shares, that is, he sort of divides the company into 1 million pieces. Then he calculates how much his whole business is worth - let's say $1 billion. And if $1 billion divided by 1 million shares, you get $1,000. That's how he calculated the value of 1 share. Recall that our owner has decided to put only 25% of his business up for sale, that is, 250,000 shares. And if we multiply 250 thousand shares by the price of $1 thousand, we get $250 million in total - this is the value of the share of the company he plans to sell. Now he has to decide: will he sell 25% of the shares to one or more buyers, or even an unlimited number of people. First, he was approached by one large investor who has $250 million to buy all 25% shares. But the investor shared with the owner a plan to grow the company and asked him to place his managers in high positions. The owner of the company didn't like it because he didn't want to lose control of the company, so the deal didn't go through. Then he was approached by several investors who promised him they would stay out of the company's business, but were willing to buy a 25% stake not for $250 million, but for only $200 million. That option did not suit the owner either. Then he decided this way: instead of negotiating with big buyers, I will offer my shares to anyone who is willing to pay 1 thousand dollars for 1 share. This offer is called IPO (initial public offering) . Remember this term, because you'll come across it quite often. Our owner had agreed with the banks from which he borrowed money, that for a small commission they would sell his shares at $1,000 apiece to absolutely any buyer. But the first buyer asked the bank the question, "What's in it for me to own one share?" Through this question, we come to the point where we find out what owning stock gets us . The bank answers the prospective buyer that: - You will be able to manage the stock company by voting on matters of the general meeting of shareholders. The weight of your vote will be one in a million votes. - You will be able to receive dividends if a majority of the general meeting of shareholders votes "yes" to pay dividends. - If the company goes bankrupt, you will receive one millionth of its assets left over after all of the company's debts to banks have been paid. The buyer decided he was being mocked and rejected the offer. After all, why should he have the right to vote if 1 his vote means little in the overall background. Why does he need dividends if they may not be assigned. Why would he need property that would be impossible to sell after bankruptcy. But more about that in the next post.
NASDAQ:AAPLEducation
by Be_Capy
#AUDCAD potential long term selling opportunitytake a look at where price currently is sitting on and the long term resistive cluster around price... price at the moment is testing a bearish weekly channel resistance line and also at weekly high which means if the downtrend in weekly scale wants to resume price cannot close above this high. although that price can whipsaw above it but it can't close above it. for taking a position depends on the kind of a trader you are say risk averse or risk seeking you may enter now or wait for a more and clear confirmation in lower timeframe. and perhaps waiting to see a shift in market structure or chart pattern formations. Also we can see a bearish divergence between price and RSI indicator in Daily time frame.
Short
by mohemati
DAX Short - High Probability Current Macro Environment is very bearish: Inverted Yield Curve :> showing that Market Participants are forecasting that rates are being cut in the future Purchasing Manger Indexes are at contractionary levels - combined with the current situation in the money market - I do not expect that the real economy is going to relief from here Current Technical Analysis is very likely to turn: We are sitting at the golden pocket, range high and are currently forming an rounded top I am expecting an fakeout H&S with early shorts getting stopped Even if we have already formed an bottom - it is very unlikely that we go trough this level without an rejection I am expecting at minium that we are able to take at least 1 take profit until it might turn more to the upside
CAPITALCOM:DE40Short
by gissinginvestments
What is a stock? Let me tell you a storyNow let's talk about what a stock is, why companies issue them, and why they attract investors. To do this, imagine a story. Imagine a small shoe workshop with a single owner. Suppose he makes boots out of crocodile leather. His product is unique to the city and in demand, because these boots are very durable and comfortable. At this point, he can only produce one pair of boots a day, and the number of orders for boots is 2 pairs a day. To meet the demand of his customers, he hires an employee and buys twice as much crocodile leather and other necessary materials for the job. With what money? With all the profits previously accumulated. The workshop now meets the demand of two pairs of boots a day. Later, the workshop receives a corporate order for 90 pairs of boots per month. In order to meet the new order, three more pairs of boots must be produced in addition to those two. But with what money to buy so many materials and hire three more employees? After all, even all of the previously accumulated profit is not enough for such a batch. In order not to miss out on a major customer, the workshop owner goes to the bank for a loan. The bank is happy to give him a loan secured by the workshop (which means that if the owner will not repay the loan, his workshop will be taken away). But all goes well, the owner hires three more workers, buys materials, and puts out five pairs of boots a day. With the proceeds, he pays the loan and interest. Now, let's go back to that beautiful day when the shop received an order for 90 pairs. The owner could have declined the loan and waited for the accumulated profit, but to do so he would have had to negotiate with a potential buyer for a longer lead time for the entire batch, and that could have resulted in the loss of the order. What it turns out: he needed the credit in order to ramp up production quickly, and thus the size of the business. Taking advantage of the credit and constant demand, our workshop owner goes nationwide and becomes the most famous manufacturer of crocodile leather boots with many workshops all over the country. And a lot of people around him want to buy the successful business. Then he starts thinking: on the one hand, he has a huge business that is profitable, and on the other hand, he has an opportunity to get money in exchange for workshops, stock of materials, employees' labor, business connections and reputation. In short, in exchange for everything he has created with his own hands and head, which is very difficult to sell individually. He likes the idea, but in order to keep part of his business, he decides that he will sell only a share of his company - 25%. He did the math and realized that this money is enough for the rest of his life (and even to live another life). What next? How does he sell something that no one will buy in pieces? Let’s continue next time.
NASDAQ:AMZNEducation
by Be_Capy
BTC massive 2 year wedge (No one mentioned before)BTC printed massive 2-years falling wedge And no one is talking about it ,we need some more time to spend inside it ,but once price breakout the falling wedge resistance …new bullcycle will start The bottom seems to be located in the confluence between : - target of double top ( bearish patten) - lower trendline of falling wedge According to many indicators We are in capitulation stage of the cycle so don’t give up ..bottom should be very close Bear cycle is a pain for majority of traders but an opportunity for smart ones
INDEX:BTCUSDLong
by stanbolle12
2
Bitcoin Long Term Possible MovementAs you see the #BTC Chart, We have been in a Down trend for almost a year . In High time frame , in this case Weekly, we are moving down with a weekly compression, you may call it a wedge. In my opinion, We are gonna complete the down trend in a 3Drive Style, Touching Monthly Demand (12K - 9K ) . The Demand is so powerful that pushed the Bitcoin Price to 60K last time! So I believe this order Block can Reverse the downtrend and send the BTC Price to 30 k Supply and then the Market can range for a while between 12K and 30K until we reach Halving and the start of the new Bullrun ! Good Luck my Hodlers! This is Just my Personal point of view , NOT FINANCIAL ADVICE!
Long
by sobhanjtn
The lifestyle of your savings, and why Big Mac?I've mentioned the word "risk" many times before, and it really is a very important word in the investment process. Today I would like to focus on a risk that you should pay much attention to as a future investor: market risk, or in other words, the risk that you will have to sell the shares you bought cheaper than the price at which you bought them, and suffer a loss in doing so. You will face this risk all the time, which is absolutely normal, because at any time events can happen which will cause the value of the stock to fall. It can be said that investing in stocks is a series of profitable and unprofitable operations. So don't get discouraged and pour ashes on your head if your first trades are unsuccessful. That's part of the process. Investing is not a one-time transaction to make a quick profit, it's a way of life for your savings. Remember the fundamental and simple rule of investing - the expected return is roughly equal to the risk you take. So, when you place money in a bank deposit, the only risk you take is that your money will depreciate by the difference between the rise in prices and the deposit rate. The easiest way to explain this is with Big Macs. Let's say you have the money to buy 100 Big Macs. But you don't spend it, you put it under your mattress. A year later, because of a price increase of, say, 7%, you can buy not 100, but 93 Big Macs with the money from under the mattress. Every time you put money "under the mattress," you reduce the purchasing power of your savings. To preserve it, you can put your money in a year's deposit at the bank. That way, in a year, you'll withdraw the original amount from the deposit, plus a profit in the form of interest. Even if prices go up, as in the last example, you can buy 99 Big Macs, not 93. Why not 100? Because the interest rate on a deposit is usually less than the percentage increase in prices (that is, inflation ). In our example, it was 6% versus inflation of 7%. If you choose not to keep money "under the mattress" and not to open a deposit, but to invest in stocks, then at the end of the year you can buy, for example, 150 or only 50 Big Macs, because you are dealing with a potentially more profitable and therefore more risky instrument. This is how the fundamental law of investing works, let me remind you again: as much risk as possible profit. Thanks to this law we can refine our formula: investing in stocks is buying a share of a company with the goal of getting a future profit from its sale and being aware of the risk of a possible loss. Awareness of the risk of possible loss is an obligatory variable of our formula, an obligatory ingredient of our investment recipe. Awareness of the problem is already a big step towards its solution. It's impossible to completely eliminate risks, but with proper management their impact can be minimized. So, after studying the entire series of posts, you will get the necessary knowledge and practical skills to: - find shares of companies interesting for investment; - evaluate the financial condition of companies; - determine the conditions for buying stocks; - determine the conditions for selling stocks; - manage risks; - take into account the results of your operations. You will have a ready-to-use strategy that will always help you find the answer to what to do or not to do with the stock at the current moment in time. You will not have to chain yourself to the monitor and do it all your time. You won't spend any more time doing it than you do watching the news or social media. You will learn to think like a intelligent investor, and you certainly will become one, if you are prepared to open yourself up to a very interesting and fascinating field of knowledge - stock investing. I sincerely wish you success on this path!
NASDAQ:TSLAEducation
by Be_Capy
BTC, PYR, LINK, VET time to DCA?!Market can still capitulate and altcoins will in that case drop 40-50% or so. But lets assume that the market will recover fast. If the short time downside is 40-50% and the longtime upside is multiples...I don't think "waiting for the perfect entry" is the best choice. Don't wait to long to DCA into your favourite altcoins that you believe will survive the bear market. If the market suddenly turn bullish, you will quickly lose that big X-factor, upside (multiples to all time high) that the market offers you right now. Here are three of my favourite coins to DCA into - VET/PYR/LINK.
Long
by TaTaTaCrypto
3
NEAR - Long-Term View! ✒️Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. NEAR has been overall bearish for a while and it is now approaching a strong weekly support and round number 1.0 in green. NEAR is forming a channel in red. For the bulls to take over from a long-term perspective, we need a break above the channel and last major high in orange Meanwhile, until the buy is activated, NEAR would be overall bearish and can still trade lower till the lower red trendline and 1.0 In this case, we will be looking for short-term buy setups. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
14
Raising initial capital: 4 approaches, of which one is not goodLet's break down the thought from the previous post in more detail. Obviously, to buy stocks, you have to have money, and if you are determined to become an investor, get ready to open your piggy bank. If you don't have savings, however, don't despair, there are other options. I suggest you look at the following 4 options for acquiring the finances to buy stocks : - Reduce your current expenses - Sell unnecessary assets - Increase your regular income - And the option I don't recommend using at the start is to borrow. I immediately stipulate that it is your, and only your responsibility how to apply the knowledge gained - to use something of the proposed or to go another way. I do not insist on anything. Rather, I am sharing information, but the decision is up to you in any case. My opinion - always start with reducing your current costs, because the funds you save now give you a chance to increase your wealth in the future through investing. Make it a rule to plan your purchases in advance and buy only what is on your list. Don't go to the store without a list, otherwise you will buy more than you really need. Next. Look at your possessions. Make a list of what you can sell without compromising your financial and mental well-being. Let what you don't need now serve to increase your wealth in the future. Increasing your regular income is probably the most time-consuming but feasible way to accumulate funds for investment. Many people are often faced with the problem of choosing between a job they love where they don't earn enough and a job they hate with a higher income or, even worse, a job they hate with a paltry income. In the latter two cases, I recommend becoming an active user of services that will help you find the job you want (but don't act in haste, don't quit a job you don't like right away). Remember our goal is to keep and increase our income, not lose it altogether. In the case of a job you love and don't make much money, think about how you can increase your income in your current job. Sometimes all you have to do is make up your mind and ask your employer for it. Even a small increase will help you start saving. And if you have both a job you love and a desired level of income, I congratulate you, you are truly lucky. Moving on. Borrowing for investments is the riskiest option. I highly do not recommend it, especially at the beginning of your investing journey. You definitely should not take a loan from a bank or other financial institutions. The credit rate will only increase your costs, and the need to repay the loan every month will break your entire investment strategy. If family, friends or acquaintances are willing to lend you money long-term and without interest, think about whether your lender is aware of the risks and whether you are aware of the risks associated with investing in stocks, and whether this person will demand the money back before the agreed upon deadline. Even if you have agreed on everything, write down all of the terms of such a private loan on paper, so it is easier to resolve any disputes. I always insist that the investment is conscious, that you understand and are ready to bear the responsibility and risks. So if you have even the slightest doubt about the borrowing option - don't take it! Consider another option. Ideally - work out a step-by-step plan and accumulate the necessary amount of money gradually.
SP:SPXEducation
by Be_Capy
Invest during crisis. Here’s why.Let's take Adidas shares as an example. To date, since the company's IPO in April 1998 the CAGR is 4.4%. At the IPO, the market price was 39.68 euros. 1.5 years later, in February 2000 – 70% less, 14.06 euros. CAGR would almost double: 9.6–9.8%. Similarly, for example, all subsequent highs and lows: 6.1% vs. 11.1%, 3.1% vs. 8.7%. Unfortunately, the probability of buying at the very bottom is small. But we have to try. What about now? THIS IS NOT INVESTMENT ADVICE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
XETR:ADSEducation
by vladimir_vereshchak
Investing is the ability to say "no" so that you can say "yes"Have a wonderful day, my dear friends! Let's get acquainted. My name is Capy. Someday I will tell you my stunning life story, and how fate has tied me to investing. I can't quite believe it myself sometimes... But that's not what today is about. Today I'm starting a series of posts to introduce you to my vision and strategy in the very multifaceted and insanely interesting topic of stock investing. Let's start by figuring out why you should be an investor? Many people think that investors are some kind of Wall Street wolves who trade stocks of companies and make unimaginable amounts of money on it. I'm sure there are those too. But, in fact, investing has long ceased to be the monopoly of the employees of banks, brokerage companies or big businessmen. Investing is available to absolutely everyone who plans their wealth and has the basic knowledge obtained at university. Or aspires to learn this indomitable beast. This is the reason I started this blog: to help everyone who wants to understand and share my ready-made strategy that you can apply in the process of investing. It's worth saying that every one of us has done the act of investing at least once in our lives, perhaps without even realizing it. For example, when placing money on a bank deposit (the well-known bank deposit), renting out real estate, opening a business or just learning. All these actions have one common formula: you give something away now in order to get it back in the future and, in addition, to make a profit. When you rent out an apartment, you cannot live in it because you have given it to other people to use. But when the lease expires, you'll get your apartment back, plus a profit in the form of the rent you've been receiving all that time. When you start a business, you put money into it so you can pay it back later through the proceeds. And, of course, you expect the returns to exceed the costs invested. When you invest in education, you plan to use what you have learned to achieve something, whether it's getting a job or enriching your inner world. It is the expectation of profit that is the main motivating factor for the investor and the main purpose of the investment. If you give someone an apple and they give it back to you after a while, that's not an investment. And if you give someone an apple, and after some time you get two apples back - you are already an investor, because you made a profit in the form of an additional apple. The upcoming series of posts will focus on one of the investment options - namely, investing in stocks of companies. I plan to teach you how to approach each trade wisely and in a measured way to keep you from engaging in short-term speculation that looks like a casino game. Going back to our formula, a stock investment is a transfer of your money to a particular company in exchange for a stake in its business. The purpose of these actions is to make a profit in the future from the sale of the shares (in the case of buying cheaper and selling higher), or the second option - to receive dividends. Dividends are when the company shares with you a portion of the profits in proportion to your share in the business. But we will focus on the first option to make a profit, that is "buy cheaper - sell more expensive". And the dividends to consider as a nice bonus to this strategy. I will publish a new post soon. Let's talk about approaches that will allow you to find funds for investment.
NASDAQ:AAPLEducation
by Be_Capy