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Posted by2 months ago

About an hour ago, I finished my business and finance exam. In this course, the main takeaway was how much to value a firm, profitability of taking on a project, and learning about prices of the firm on the stock market (through EPS, book value, etc.). While taking the exam, a thought occurred to me.


Why exactly am I studying this?


To be exact, why exactly am I studying how to value a firm, and how the valuation of a firm affects it's stock market price and dividends, when the top 0.1% can simply manipulate the value of a firm's stock?

What would be the point of saying that a medical firm on the verge of releasing some cure for cancer and showing great financial accounts is doing extremely well, just for HFs to come and short the shit out of its stock into bankruptcy?

What would be the point of working for a company that is small but having great results but on the other hand, a HF putting artificial buying pressure on a much bigger company with not so great results?

For the rest of my life, I can guarantee the answer to every question I have will be somewhere along the lines of power and greed.

What I have learned in my bachelors degree so far is that without manipulation, things that are happening right now, should be happening differently. And it is sad to see that the majority of my classmates are unaware of this. Studying this degree only seems to actually prove useful in a non-existent society where the ultra wealthy do not take advantage of the systems made for society. This is why we need a market reset. To bring everyone as close to the same level as possible. And to finally make the world aware of how much fuckery has been going on since the start of time.

Thanks for coming to my TED talk.

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Posted by16 days ago
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Posted by4 months ago
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Crossposted by2 months ago
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Posted by10 days ago

This might look like a typical "where do I start?" question and not worthy of a thread, but it isn't, so hear me out.

I've been trying to get a better handle on finance economics recently. I don't know if that is the exact term, but what I mean is that while I find micro/macroeconomic concepts to be fairly easy to understand (if I follow an introductory course or undergraduate-level textbook), I really struggle when it comes to understanding stocks, shares, bonds, securities, equities, futures, derivatives, etc. Basically, I will look up a term such as "quantitative easing" and I will find that I need to understand "bonds" to properly understand it. When I look up what bonds actually are, I find that I first need to understand what "securities" are. When I look up what securities are, I find that they are "financial instruments" or "financial assets". Then when I look up "financial instruments", apart from a brief and fairly abstract 2-3 lines saying what it is, the bulk of the explanation is composed of examples or types of instruments. In other words, it leads me back to "securities", which I don't yet understand.

I find this field to be really imprenetrable for this reason. I just can't seem to find the base level, of completely beginner explanations that start with the fundamental building blocks to then build up. To understand securities, I must understand financial instruments, and to understand financial instruments, I must understand securities, equities, etc. There is this kind of circular explanation problem. If I go to Wikipedia or Investopedia or some other basic website, each article is loaded with so much financial lingo that I find it impossible to understand, but then I look up articles explaining that lingo, and those articles are also crammed with lingo, often leading me back to where I started.

What is the best place to really begin, so that I can start from the ground up without being sent in full circles and ending up none the wiser? I can memorise certain chains as though they were code, i.e. a bond is a security is a financial instrument, but I still don't really know what I'm saying other than "A is B is C". Perhaps there is a better forum to ask this question; if so, please direct me to it.

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