Too Much of a Good Thing in Stocks
A company you own stock in is issuing new shares to help raise funds. The federal government is printing dollars to fund bailouts and other social programs. Who does these things really hurt you figure? Well, it hurts you oh responsible one. The corporation is devaluing each of you shares and giving a tiny piece of them to the new shareholder, the government is lowering the worth of each dollar hurting those who were responsible and saved to help those who were irresponsible and spent.
All of our economies capitalist pricing is based off of supply and demand. If there is more supply of anything without an increase in demand the price price must go down. In order to learn about stocks you must have to learn about economics. Don’t worry though, if you’re the type that wants to learn to invest, economics should come pretty naturally.
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