Just Coli It *Ask A Question Thread*

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I have no idea how the stock market works.

Why are some big companies stock like 40 bucks a share, an another company is like 2 dollars a share or even like 300 a share when they are about the same size.


It all boils down to Supply and demand.

There are all kinds of different theories for what is intrinsically behind the value of a stock though.

Me, personally, I like the dividend theory. Basically, a stock's value is determined by the Present value of all the future dividend payments. I've found that this also works really well in determining Home and property values.
 

Broke Wave

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I have no idea how the stock market works.

Why are some big companies stock like 40 bucks a share, an another company is like 2 dollars a share or even like 300 a share when they are about the same size.

This doesn't make you a foolish man, it makes you an honest one. The fact of the matter is that nobody knows how the market prices stocks, or what exactly drives stocks to have the price that they do have, but it is a variety of things.

Stock prices indicate four things usually :

The price to earnings ratio (How profitable is the company to shareholders compared to other industries)

Future expectations on price (Speculations, news etc etc)

Total shares available/the float (How many shares are there? How diluted is the stock by outstanding shares?)

Dividends (What is a fair price to pay for a stock giving out X dividend?)

That would explain why Google is at 709 dollars a share, while Exxon is 92 dollars a share.

Google is more profitable per share, and in higher demand than Exxon, while having less shares available.

:salute:
 

Serious

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What fetus said is incorrect. Mainly because fillibusters are used informally all the time and this Congress has done it to the president more than any other Congress in history. The thing about it is one no longer has to talk for the entire period of a filibuster, the entire Congress doesn't even have to be session. In the old school you had to be up there. Those segregationists would sit there and just start reading the bible. Literally. They would hit you with poetry too.

These days, it's not done officially because only one person has to be there and really just the threat of it is enough. So even then, that isn't necessary. Once the other party threatens to filibuster something, its almost pointless to pursue it aside from getting the public to see their bullshyt. So the majority just moves onto another topic. Imagination if Obama sat there on his judicial appointments for like 3 months.

In other words, a filibuster is a means to hold up a final majority vote on a piece of legislation, an appointment, change to Senate bylaws, etc. It can be overturned by instituting cloture to end all debate, but that requires 60 votes.

Essentially, the Republican party has made it so that every bill the president passes that they agree with to whatever degree requires a supermajority. That is why shyt doesn't get done.
sohh you gonna vote breh? :shaq:
 

No1

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sohh you gonna vote breh? :shaq:

Yeah, I'm about to register to change my shyt to where my law school is on Monday. I still have that shyt on Michigan. Old heads were mad when college kids showed up in 08 and made have certain quantities of marijuana legal in that state :shaq:
 

alybaba

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I have no idea how the stock market works.

Why are some big companies stock like 40 bucks a share, an another company is like 2 dollars a share or even like 300 a share when they are about the same size.
Because some companies issue a higher number of shares (the pie is divided up into more slices), some do splits (increase the number of slices again) or reverse splits (combine slices to make larger slices). Whether a share is $5 or $50 is really meaningless by itself. What matters really matters: Price to Earnings / Earning per Share, Dividend yield and growth expectations (i.e. future revenues, costs, margins and earnings etc.)
 

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Yeah, I'm about to register to change my shyt to where my law school is on Monday. I still have that shyt on Michigan. Old heads were mad when college kids showed up in 08 and made have certain quantities of marijuana legal in that state :shaq:
:russ: We gotta a lot of Leyet's in California on some f*ck the government steeze, that don't vote, yet get upset when MJ isn't legalized state wide. :sitdown::mindblown:


 
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Techniec

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Why do some companies pay dividends and others don't, and the ones that do, why do they. Aren't the dividends really low? Wouldn't that money be better served keepin it to pay debt or maintain cash reserves for expansions, takeovers etc?
 

Pool_Shark

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I'm trying to get my weight up financially and was told that mutual stocks is the best place to start.


I have a rough idea of how those work, but how do I go about investing in mutual funds?

Are there any other forms of income that can be reached through investment that are good for a beginner?

How does someone invest in the stock market? Is it even worth it?

Any book suggestions on the subject would be good, or articles, or just a post every where I look uses a lot of buzz words so it's difficult to see what they're saying.
 
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