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/biz/ - Business & Finance


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15469869 No.15469869[DELETED]  [Reply] [Original]

The world of fiat, stocks and bonds is fucked up and needs to change in a radical way before the system collapses. Let's discuss good ideas to fix the system.

Problem 1: Stocks. The value of stocks is extremely arbitrary. Nobody gains anything from the value of stocks. Jeff Bezos is the world's richest man because people have pumped AMZN stock to absurd levels. He can't sell the stocks, because then shareholders get scared and start selling, Amazon's stock loses its value. As I already mentioned, that doesn't mean anything. Amazon still has its warehouses and servers, and people still shop on Amazon. If 99% of the stock value of disappeared tomorrow, the company could do the exact same thing as always.

But if Bezos sold his shares and AMZN stock went down, the board of directors who employ Bezos to run the company would kick him out. Because the majority shareholders of Amazon are the only people in the world who benefit from Amazon's stock price, and they employ the directors.

So the horrible truth is, Bezos has over 100 billion dollars that are *absolutely useless*, nobody in the world can do anything with that money, not even him. It's simply there to provide value to the few cunts who own shares of Amazon.

That's fucked up, and if we find a way to fix that while still making businesses worthwhile, we all get rich.

>> No.15469884

>>15469869
Why do chinese eat literally everything?

>> No.15469893

>>15469869
Imagine all those parasites that are squirming inside her intestines.

>> No.15469897

>>15469869
What the fuck is that liquid?

>> No.15469903

>>15469893
you dont cook your food you?

>> No.15469908

>>15469884
Communism, after that this become "cultural"

Same thing in Venezuela, they are already eating street dogs

>> No.15469913

>>15469893
>her

>> No.15470017

For real tho, stocks are a Ponzi and society would improve tenfold if they all lost all their value.

>> No.15470042

>>15469869
First time I learned about stocks as a kid I thought it was a scam. The price has nothing to do with the worth of a company but it's just supply and demand of the stock. Like pokemon cards for grown ups.

>> No.15470089
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15470089

Do they remove the venon or it simply doesn't matter for some reason?

Do the bunnies keep dancing in (((her))) tummy afterwards and for how long?

>> No.15470102
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15470102

>>15470042
>>15469869
>>15470017
>Woahhh like what if stock isnt money guys soooo deep am so smart

>> No.15470120

>>15470102
Stocks are just trading cards and coupons at best if there is a dividend, prove me wrong.

>> No.15470123

>>15469869
>The value of stocks is extremely arbitrary

retard alert!

>> No.15470146

>>15470120
>muh radical reductionism lmao

>> No.15470149

>>15469869
Low IQ thread.

You're missing the key feature of stocks that define their price: dividends.

A certain % (defined by the board) of a company's profits are distributed to shareholders.

A stock's price will always trend towards an equilibrium between expected dividend gains Vs. the ROI of bonds.

In other words, Bezos could sell off his entire amazon position in a single day without affecting the price more than incrementally, because it's already at its equilibrium point and institutional investors are waiting to snap it up like baby birds in a nest.

>> No.15470152

>>15469869
I'll be the retard that asks this time: what the fuck is in that glass?

>> No.15470230

>>15470152
Hot oil.

>> No.15470257
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15470257

>before da system collapses
>fug da rich that money belongs to me!!

>> No.15470271

>>15469893
Dude I can only get so erect

>> No.15470371

>>15470123
You got a better rebuttal? Cus they are arbitrary

>> No.15470397

>>15470371
the price of a stock is the discounted present value of all assumed future cash flows. It's about as far from arbitrary as you can get

>> No.15470420

>>15470149
I actually was gonna mention dividends, but the post was long enough.

Dividends are issued to shareholders yes, but the dividends come from the net income, not the stock price. A stock's price is not correlated to the dividend at all, but dividends are paid out to shareholders, thus the more shares you have, the more dividends you get. It's still unnecessary. A company isn't served by having shareholders that get a dividend anyways. Without the concept of dividends we probably wouldn't have a stock market, at least not a non-speculative one, but there must be other ways to distribute part of a company's earnings to the people who are instrumental in keeping the company running. Like issuing dividends to the workers and initial shareholders.

The stock price doesn't trend towards that equilibrium, you're ignoring insider trading

>> No.15470423

>>15470397
The price of a stock is based on faggots buying and selling it for a wide variety of reasons. It has no objective basis in "cash flows".

>> No.15470428

>>15470149
If it was that easy for billionaires to dump their shares, they would've done it. If Warren Buffet sold all his shares of Berkshire Hathaway, nobody would want to stay in the company, thus the stock would crash and his shareholders would be furious.

>> No.15470475

>>15470257
You misunderstand.

The value of money and labor is defined by the society that gave you the tools to perform said labour.

Jeff Bezos obviously deserves to earn more money from Amazon than the average Amazon employee, since he created it and provides the jobs, but there is no law of nature or ethics that states he deserves 10.000 times more. Why not 1000? Why not 100?

In a just and Democratic world, society, through the use of non-bought politicians or decentralized stuff like block chain, would place a value on Bezos' efforts, while also taking into account how well off everyone would be.

So for example if we figured that Bezos would be worth 100 times the value of an ordinary worker, wealth could be distributed in such a way that everybody can study, eat and live in safety, while people like Bezos can live in greater luxury for the public service they have done, but the limit can be sustainable

>> No.15470482

>>15470423
People buy and sell for one reason - to make money (or cut losses). Their decisions are still based on what they think the actual value of the business is versus the stock price at that moment in time

>> No.15470483

>>15470397
Can you assume Netflix's future cash flows? Not at fucking all. Yet its value is 50x that of most companies with a steady and foreseeable cash flow.

>> No.15470503

>>15470482
Key words being "what they think", and seeing as the stock prices are controlled by a mix of greedy shareholders, institutions with supercomputers and clueless schmucks, stock prices are rarely connected to the real value of any business.

>> No.15470543

>>15470483
Of course you can, retard. Forecasting the future is always done with a high degree of uncertainty which is why tech stocks are so volatile, so much of their assumed value is later in the future when they dont need to invest as much in R&D and can begin paying excess cash to shareholders via dividends and buybacks. You've clearly never seen a sell-side financial model before

>>15470503
That's why its a market, everyone has their own opinion on what things are worth. But the buying and selling is still fundamentally driven by peoples' perception of the actual value of the business.