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Cake day: October 4th, 2023

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  • JasSmith@sh.itjust.workstoMemes@sopuli.xyzI'm working on it, ok?
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    7 months ago

    You will never make more interest on an investment than you will get charged interest for the same amount as a loan.

    The historical S&P500 average is 11.88% annualised. Unless your interest rate is above this, you’re better off investing. In reality it’s more complex as there are tax considerations, liquidity, risk, opportunity cost etc to calculate. If your interest rate approaches this, paying down debt is indeed the best course of action.



  • Shorting a stock in effect means selling a stock you don’t own. The stock market derives price based on supply and demand. When more people are selling than people are buying, the stock price goes down. There are many more dynamics at play than this though. Often there are investment firms which will identify a price mismatch and attempt to price out the short sellers by buying and pushing the price up. This can trigger a short squeeze which makes the price suddenly pop.

    IPOs are exciting times to be a trader, but individuals are largely in for the ride. They can’t move the market. If they identify one of these larger plays they can join the fun. Game Stop was one of the first examples of a consumer-driven play, and it scared the shit out of institutions because it upended their risk models.




  • Fair trading laws are broad and complex and vary widely by place to place. There are many restrictions on trading practises which mislead customers. Amazon employs a myriad of practises designed to do exactly that. Some of them detailed in the article. I’m sure they think they’re skirting the law to the legal side, but experts are going to determine that now.