• locuester@lemmy.zip
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    5 days ago

    By investing some extra money with them, you’re owning a piece of the company.

    If/when the company goes up in value, your shares in the company are worth more. The inverse is true as well.

    If you’re in the US, check out brokers like Charles Schwab or robinhood. You don’t have to have thousands of dollars to get started.

    • MacAnus@sh.itjust.works
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      5 days ago

      Thank you for the explanation, I get it now!

      And thanks for the advice but I wouldn’t do that… I don’t believe investing is ethical.

      The company you invest in has to turn your money into more money somehow, and more often than not that ‘somehow’ is by fucking over workers, nature, or customers.

      I know you only meant to help and I could be wrong, but I do believe we should try to prevent people from ‘enjoying the fruits of capitalism’ as you put it.
      Or atleast let them know that capitalism doesn’t grow fruits and all you can do is enjoy the fruits of someone else’s labor.

      There’s no such thing as free money, and 90% of the world population would be a lot better off if people would quit trying to get some.

      • locuester@lemmy.zip
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        5 days ago

        Investing is simply loaning capital to someone so they can build and pay for things which generate production.

        It’s like if your town wanted a park, but you didn’t have the money, you’d borrow it from someone and pay interest. You’re borrowing from investors, who lend to you with expectation of yielding extra for them assuming the financial risk. That scenario is more like a municipal bond, but similar scenario for the stock market.

        If you want to start a farm, or buy a house, or build an apartment building for your town, you’d need investors to pull together capital to pay for it. In most small business scenarios, the investor is a bank. But for some small businesses starting up, who need large amounts of capital and are high risk, they raise money through others in exchange for a piece (shares) of the business. Over time, the business if successful would go public - which means opening up those shares for the general public to trade.

        I understand the “people shouldn’t make money” argument, but it’s a proven effective way to grow. Its flaws seem centered around when politicians are in bed with the investors. Then crooked shit happens. We have systems in place to protect and prevent, but they simply aren’t working in the United States anymore due to widespread corruption of our government.

        • MacAnus@sh.itjust.works
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          5 days ago

          Thanks for taking the time.

          I do understand the principle of investing and agree on some level that it can be a good thing for starting a business.

          You’ll surely agree though, that his is not how most see investments, and not what you were describing either;
          Netflix does not need more help getting started.

          People who invest in that type of business do I purely with speculative intentions.