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1
vote
Accepted
Should I take home a profit which is a large part of my equity?
Whether or not you should cash out depends on your risk tolerance, but that's a general answer for any kind of trading, and we can't help you with that.
Note that you'll have to pay capital gains tax …
1
vote
How to interpret operating margin when we invest in companies?
Net_Income_before_tax / Sold_item_at = Operating_Margin, so yes, your interpretations are correct:
raise the selling price, and Operating Margin goes up;
reduce COGS and expenses (which increases Net …
5
votes
Confusion on Bid vs. Ask and Spread; Profits
how does a person make a profit when buying stock?
You don't. Profit is made when you sell at a higher price than what you bought it at.
Consider the man with an apple cart selling apples. Does he …
5
votes
How do companies profit after initial shares have been sold?
What I don't understand is how they continue to make money (from the market) once the initial shares have been sold.
As you intuit, they don't, because, of course, the purpose of business is to make …