Did not truly appreciate the fact until I read this book, but \u2026 companies and governments run exactly the same.<\/p>\n\n\n\n
Not with the same purpose \u2026 contrary to what Mr. Potatohaid says\/thinks, can\u2019t run a country like a business.<\/p>\n\n\n\n
No, rather government (or gub\u2019mint, to be consistent) and private enterprise need money to function \u2026 and all of it is just capital.* \u201cCapital\u201d just means money (no mystery why it\u2019s the \u201cU.S. Capitol<\/em>\u201d \/ trine to trick us!) with gub\u2019mint and PE selling \u201cproducts\u201d to do one of two things: Now, these \u201cproducts\u201d come in (basically) two forms \u2013 stocks or bonds, both called \u201ccertificates\u201d<\/p>\n\n\n\n By way of example\/explanation \u2026 a business \u201cmanufactures\u201d a stock certificate, sets its value (see e.g., an IPO or \u201cInitial Public Offering\u201d), then sells the certificates to a \u201csecurities broker” (which is just fancy for a salesman of stocks & bonds) and after all the certificates are sold from the IPO, the stock certificate\/stock is traded (bought & sold) on the stock (or securities) exchange \u2026 the \u201cmarket.\u201d<\/p>\n\n\n\n Here\u2019s a handy-dandy chart for reference:<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n The book wisdom suggests wiping out debt before investing, but why not do everything all at once right now?\u00a0<\/p>\n\n\n\n The book wisdom also says invest early and consistently, don\u2019t follow trends and most financial advice giving recommendations are about a year behind.<\/p>\n\n\n\n Hmmm. \u00a0Sounds like a Ponzi scheme to me … how to get rich in America.<\/p>\n\n\n\n Welcome to investing.<\/p>\n","protected":false},"excerpt":{"rendered":" Did not truly appreciate the fact until I read this book, but \u2026 companies and governments run exactly the same. Not with the same purpose \u2026 contrary to what Mr. Potatohaid says\/thinks, can\u2019t run a country like a business. No, rather government (or gub\u2019mint, to be consistent) and private enterprise need money to function \u2026 … <\/p>\n
*Taxes are the bane of existence & the lifeblood of gub\u2019mint \u2013 power to tax = power to destroy \u2013 but taxes don\u2019t cover all the costs of controlling human behaviors\/inclinations \u2026 that is pricey<\/em> \/ digress<\/sub><\/p>\n\n\n\n
1) generate income, or
2) grow in value<\/p>\n\n\n\nStock<\/span>
\u00a0
Growth\/Equity = Ownership
Unlimited growth potential BUT
Could lose everything
\u00a0
Value = depends
Payment (dividends)? = depends<\/td>Private Bond<\/span>
\u00a0
Characterized as \u201cincome\u201d or \u201cdebt\u201d
Status = lender\/creditor, no ownership
Return of initial investment only
\u00a0
Value = set at time of purchase
Interest rate = set at time of purchase
Payment = set at time of purchase
Maturity date = date initial investment returned<\/td><\/tr>Reserves<\/span>
\u00a0
Ideal? = 12 months\u2019 expenses
Reality? = Get off the paycheck
to parking lot carousel and start saving
\u2026 $25\/mo to start<\/td>Gub\u2019mint Bonds<\/span> \u2013 bonds issued to finance
\u00a0
Two types:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 General Obligation (GO)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Revenue
\u00a0
GO = schools, highways, public works projects
(i.e., non-revenue generating \/ makes no money)
\u00a0
Revenue = toll roads, stadiums, airports, etc.
(i.e., revenue generating \/ makes some money)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n