43 votes
Accepted

Stock money origin and existence

The price of a stock is not 'real' in the sense that it represents a guaranteed value. The price of a stock is simply the last agreed price where someone wanted to buy, and someone wanted to sell. If ...
27 votes
Accepted

When Twitter gets sold, do pre-purchase shareholders need to do anything?

Twitter stockholders will not be required to issue orders for Elon to purchase their shares. Because the company's shares will no longer be traded publicly, the company will be delisted from the ...
  • 386
11 votes

Stock money origin and existence

Simply put, there is no such thing as "conservation of value" in an economy. There is no reason why a stock that was originally valued at $2000 should continue to have that value forever - ...
7 votes

Stock money origin and existence

(A) now holds 20 shares * $80 = $1600 worth (B) now holds $800 as real life money Compared to where they started, A has -$1800 and 20 shares, B has -$200 and no shares, and the original seller has $...
  • 170
7 votes

Stock money origin and existence

No money is lost or created when stocks are bought and sold. Stocks aren't money. You are incorrectly counting the value of stocks as part of the money, but it isn't part of the money supply. If we ...
  • 6,624
4 votes

Stock money origin and existence

A stock's price is based on what people think the company (or the stock, at least) will be worth in the future. So the change in value, in some sense, is borrowed from the future. Note that this ...
  • 32.6k
3 votes

Stock money origin and existence

The shares are not money. The company could go out of business and the price could drop to $0 tomorrow. You need to track the actual money. A starts with $1800 and winds up with $0 and 20 shares B ...
2 votes

How much time should I spend while researching stock?

How much time should you spend researching a house? It depends on what you plan to do with the asset, and what your opportunity costs are. You should spend no more time on research than the expected ...
1 vote

How much time should I spend while researching stock?

Is it true that it will take 2 to 4 hrs for researching stock No. There is little or no correlation between amount of research and financial success. Consider professional fund managers: They ...
  • 7,334
1 vote

How much time should I spend while researching stock?

Is it true that it will take 2 to 4 hrs for researching stock Remember whatever you determine is the typical number of hours for YOUR average investment decision, that number may be just the ...
1 vote
Accepted

How does the market correct the price of government bonds ETF's? Does it?

Government bond prices are negatively correlated to underyling interest rates. As interest rates go up (which they have), the price of existing bonds goes down, as consumers can now buy bonds issued ...
  • 119k
1 vote

Following the big guys in real time

Impossible, for the simple reason that investment entities (even though he's a person, we can think of WB as an entity) generally don't face exchanges directly but rather through a broker. So in a ...

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