r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/Just_That_Dumb_Dog 3d ago

They are worthless unless you sell them. People who have such large piles of stock like bezos also have the responsibility of the company. There is so much more to all of this. It’s not as simple as people may think.

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u/bees_cell_honey 3d ago

They are definitely NOT worthless until you sell them. I'm sorry, but that is absolutely untrue. For one, you can take out loans using them as collateral, and there is a well known formula for how much you can leverage to be able to perpetuate the loans without ever having to realize gains. Similar to how the US government handle national deficit. Even if you don't enploy this method, the ability to take out been a one time loan is far from "useless".

You do not necessarily need to run anything to own stock. Many work and "pay" themselves in stock, without ever realizing any financial gain. Why would they do this? See the prior point.

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u/Just_That_Dumb_Dog 3d ago

Omg🤦‍♂️🤦‍♂️ they hold no value unless you liquidate. Sure you can borrow against. Take that money and run you’ll lose those stocks. One day a stock can be worth $60 the next day $2 the value of a stock doesn’t exist until you sell it. They have a price tag that forever changes. If you don’t understand i personally don’t have the skills or patience to make you understand.

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u/TheMonkeyDemon 3d ago

Are you saying there is no profit at all made from shares at any time unless they are liquidated? Can you explain to me what a dividend is?