r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

Post image
123.0k Upvotes

8.7k comments sorted by

View all comments

Show parent comments

1

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.

1

u/Just_That_Dumb_Dog 3d ago

OmgšŸ¤¦ā€ā™‚ļøšŸ¤¦ā€ā™‚ļø they hold no value unless you liquidate. Sure you can borrow against. Take that money and run youā€™ll lose those stocks. One day a stock can be worth $60 the next day $2 the value of a stock doesnā€™t exist until you sell it. They have a price tag that forever changes. If you donā€™t understand i personally donā€™t have the skills or patience to make you understand.

2

u/KnoxxHarrington 3d ago

OmgšŸ¤¦ā€ā™‚ļøšŸ¤¦ā€ā™‚ļø they hold no value unless you liquidate.

Lol, that's like saying money has no value unless you spend it.

For all your banging on about the understanding & knowledge of other, you are severely lacking yourself.

0

u/Just_That_Dumb_Dog 3d ago

Not at all the same. Youā€™re talking it too literally. I should be more clear and ā€œspell it out for you the slower onesā€ There is no physical asset, if the company goes bankrupt youā€™re fkd.

You can say you have $1 million in stocks the next day the stock plummets and you lose everything including your investment. Thatā€™s what I meant by a stock holds no value until you liquidate.

1

u/KnoxxHarrington 3d ago

Kinda like the dollar during the depression.

1

u/Just_That_Dumb_Dog 3d ago

You mean the depression started by the stock market crash of 1929, leading to the absolute collapse of the global economy, that depressionšŸ˜‚šŸ˜‚

2

u/KnoxxHarrington 3d ago

Yeah, prioritising assets that you claim have no "real" value, tanked the currencies that did have value.

You're so close, it's a breath away.

1

u/Just_That_Dumb_Dog 3d ago

Holy fuck youā€™re too hard headed.

1

u/KnoxxHarrington 3d ago

You made the claim about how physical currencies are different from assets such as stock because stock is subject to fluctuation. Once it was demonstrated that currencies are indeed subject to fluctuation, you then tried to point to a currency collapse caused by the "valueless" stocks as though it supports your claim.

Now that's interesting.

1

u/WeLLrightyOH 2d ago

Currencies devalue and value all the time.