Ana thinking that shorting means selling was as funny as when she thought Sting was a band. At least she’s come as far as to know when she doesn’t know something. Kudos to her for trying to learn about it although I think she’s going about it the wrong way. She should read a book or talk to someone who knows what they are talking about. (Not Cenk) Next she should take a course on statistics.
Cenk with cuck is the same with the internet and Pepe the Frog. The internet has been using Pepe the Frog for a massively long time. Now that the Alt Right (Neo Nazis) use it, everyone who uses it is racist? No, that’s stupid. Same with everyone who uses cuck.
LOL Anna “The Friendly Host” banner was perfectly placed!!! How does Anna not know about shorting the market?? She referenced to it multiple times in the past when talking about the housing market.
Cenk is wrong that the Gambling and trading on the Stock Market are different because the Stock Market is tilted in your favor. Cenk is right when he talked about “betting” when talking about trading. Places like AmeriTrade or whatever make money off of suckers that think they can beat the market. Its a “loser’s game” (there’s a paper by Charles Ellis on that). Another illusion is that people that manage funds are smarter and can beat the market so you should buy actively managed funds.
People think then can earn returns like Warren Buffett. You won’t. What did Warren Buffet say for those inheriting from him when he’s gone? Low-cost index funds: http://www.marketwatch.com/story/warren-buffett-to-heirs-put-my-estate-in-index-funds-2014-03-13 so if you really want to maximize your money, do what Warren Buffett tells you to do: invest in index funds. Buy on a regular periodic basis, hold them for decades. You don’t need to know a lot more than that. The rest is just noise.
Listening to the explanations on the finance is painful. The explanation of shorting was particularly painful- as noted above- but not unexpected. I distinctly remember having conversations with my retirement aged parents about shorting and their questioning “is that even legal?” Yes, yes it is, and we’re all better off for it.
We also have to stress that there is a difference between “trading” and “investing”. Everyone should be investing. Trading requires a bit more knowledge and willingness to take on risk. A healthy market needs both types of players to function.
Joe is a long term investor. He wants to retire in 30 years, and he likes Apple. He thinks the company is just going to keep growing and growing and they are really poised to go someplace, long term. So he buys 100 shares intending to sit on them for 30 years, and sell them off then at hopefully a much higher price, to generate money to live on after he has retired.
Who does he buy those shares from? Ted- a trader. He thinks that the next iPhone, contrary to popular opinion, will not be glad in 24k gold, nor have the much hyped feature of a little arm that springs out to lovingly massage its owner’s unmentionables. So he borrows 100 shares to sell to Joe. Later, when the price drops 5% because the mis-estimated product launch, he will buy the shares from some other seller to return to his lender, and pocket the 5%.
Who wins in that situation? Well, both of them. Joe gets to buy the shares he wants when he wants them because Ted is willing to provide liquidity. And in 30 years, if he’s made 10000% over the course of his investment, he wont even remember that little 5% dip that happened the first week he held his shares.
I agree no one should be looked down upon for not knowing this- but this is an area that affects everyone who intends to stop working at some point in their life. Study up- its going to impact you, and the more you know the less taken advantage of you will be. I applaud Ana for at least making an effort to learn.
Cenk’s explanation of shorting a stock isn’t quite right.
Shorting a stock is when you borrow the shares from somebody else and sell them, pocketing the cash. But at some point, you have to give those shares back to whom you borrowed them from. So, you’ll have to repurchase them.
The hope is that by the time you need to repurchase and return those shares, the price has gone down.
You are 100% correct. TYT needs a progressive show on personal finance. I have recommended this previously. TYT please do a few segments on personal finance. Please!
Love the show generally. But I find it amazing that Ana has such strong views on Wall Street and regulation without knowing the utmost basics of how markets work.
Ana, you’ve probably heard of “stock options” in a different context to futures and shorting, and this is where an employee will be offered options as part of their remuneration package. Here, the employee will be granted a package of shares (e.g 1,000) at a specific strike price (e.g. $10.00), that will mature sometime in the future (e.g. 3 years). These options are essentially free shares, but you do not really own then until they are have matured (e.g. you cannot sell them and do not receive a dividend – if one is paid – until they have matured).
So, if after the three-year maturity period, the shares are worth more than $10.00, you can sell them (or keep them) and keep the difference: e.g. if the market price is now $11.00, you have made $1.00 per share, and therefore $1,000 is you sell the entire parcel. Typically you be required to declare this transaction as capital income and pay some form of tax on it, but is all jurisdiction-dependent.
If the market value is less than $10.00, then the shares are “under water” and effectively worthless. You can keep them of course and hope that someday they will be worth something, and maybe they will pay a dividend. You can just walk away from them then you owe nothing.
Share options are very common is some industries – Tech and IT for example – as a means of incentivizing employees and boosting their package without actually paying them cash. I know guys that joined companies early, got a bunch of options when the strike price was low and they were able to sell up and pay off the mortgage (or better). And then there’s people like me that had lots of options that never amounted to anything; I’ve got my $3.56 payout cheque pinned to the board in my office as a reminder of what happens when good options go bad.
Big pharma, like Pfizer, e.g., may prosper, but do you really want to be supporting big pharma? I’m dealing with this sort of thing with my bank, which is one of the banks invested in DAPL. I have to locate a nearby replacement. One encounters the morality issue in any fossil-fuel investments one may have. I have begun to divest my holdings in companies of WHATEVER sort whose behaviors I know to be regressive and harmful to people and to the environment. I encourage Ana (and all progressives) to seek to do the same. People over profits, both on the job and off. We must walk the walk.
Analytics
Ballpark figure
Bandwidth
Business-to-Business
Business-to-Consumer
Best of Breed
Best practices
Bizmeth
Brand
Brick-and-mortar
Business process outsourcing
Buzzword compliant
Building capabilities/Capability building
Client-centric
Cloud computing
Close the loop
Co-opetition
Come-to-Jesus moment
Content marketing
Core competency
Creative
Customer-centric
Downsizing
Drill down
Drinking the Kool-Aid
Early-stage
Employer branding
Eating your own dogfood
Enable
Entitlement
Enterprise
Event horizon
Eyeballs
Free value
Fulfilment issues
Generation Y
Granular
Herding cats
Holistic (approach/integration)
Home real estate usage for an unoccupied dwelling unit
Hyperlocal
Innovation
Innovative
Knowledge Process Outsourcing
Leverage
Logistics
Long Tail
Low Hanging Fruit
Make it pop
Mindshare
Mission Critical
Management Visibility
New economy
Next generation
Offshoring
Opportunities
Pain point
Paralysis by Analysis
Passionate
Profit center
Return on Investment
Reverse fulfilment
Rightshoring
Seamless (integration)
Serum
Share options
Solution
SOX
Sustainability
Storytelling
Startup
Take Offline
Talent Relationship Management
Touchpoint
Value-added
Visibility
Water under the bridge
Turnkey Solutions
Web 2.0
Deep Dive
Dark Web
The Cloud
Disruptive
Open the Kimono
thought leader
leveraging
not reinventing the wheel
paradigm shift
take this offline
key metrics
deliverables
actionable items ( i actually like this one… to many meetings are wasted with no actionable plan or accountability)
The bond market is even more heavily regulated than the stock market, and bond holders, as creditors to a company, are first in line when a company goes bankrupt. Stock holders are last in line. The bond markets are typically viewed as much less risky- but thus less rewarding.
Comments
Ana thinking that shorting means selling was as funny as when she thought Sting was a band. At least she’s come as far as to know when she doesn’t know something. Kudos to her for trying to learn about it although I think she’s going about it the wrong way. She should read a book or talk to someone who knows what they are talking about. (Not Cenk) Next she should take a course on statistics.
Cenk with cuck is the same with the internet and Pepe the Frog. The internet has been using Pepe the Frog for a massively long time. Now that the Alt Right (Neo Nazis) use it, everyone who uses it is racist? No, that’s stupid. Same with everyone who uses cuck.
LOL Anna “The Friendly Host” banner was perfectly placed!!! How does Anna not know about shorting the market?? She referenced to it multiple times in the past when talking about the housing market.
Cenk is wrong that the Gambling and trading on the Stock Market are different because the Stock Market is tilted in your favor. Cenk is right when he talked about “betting” when talking about trading. Places like AmeriTrade or whatever make money off of suckers that think they can beat the market. Its a “loser’s game” (there’s a paper by Charles Ellis on that). Another illusion is that people that manage funds are smarter and can beat the market so you should buy actively managed funds.
People think then can earn returns like Warren Buffett. You won’t. What did Warren Buffet say for those inheriting from him when he’s gone? Low-cost index funds: http://www.marketwatch.com/story/warren-buffett-to-heirs-put-my-estate-in-index-funds-2014-03-13 so if you really want to maximize your money, do what Warren Buffett tells you to do: invest in index funds. Buy on a regular periodic basis, hold them for decades. You don’t need to know a lot more than that. The rest is just noise.
Listen to this guy. He knows what he is talking about.
Listening to the explanations on the finance is painful. The explanation of shorting was particularly painful- as noted above- but not unexpected. I distinctly remember having conversations with my retirement aged parents about shorting and their questioning “is that even legal?” Yes, yes it is, and we’re all better off for it.
We also have to stress that there is a difference between “trading” and “investing”. Everyone should be investing. Trading requires a bit more knowledge and willingness to take on risk. A healthy market needs both types of players to function.
Joe is a long term investor. He wants to retire in 30 years, and he likes Apple. He thinks the company is just going to keep growing and growing and they are really poised to go someplace, long term. So he buys 100 shares intending to sit on them for 30 years, and sell them off then at hopefully a much higher price, to generate money to live on after he has retired.
Who does he buy those shares from? Ted- a trader. He thinks that the next iPhone, contrary to popular opinion, will not be glad in 24k gold, nor have the much hyped feature of a little arm that springs out to lovingly massage its owner’s unmentionables. So he borrows 100 shares to sell to Joe. Later, when the price drops 5% because the mis-estimated product launch, he will buy the shares from some other seller to return to his lender, and pocket the 5%.
Who wins in that situation? Well, both of them. Joe gets to buy the shares he wants when he wants them because Ted is willing to provide liquidity. And in 30 years, if he’s made 10000% over the course of his investment, he wont even remember that little 5% dip that happened the first week he held his shares.
I agree no one should be looked down upon for not knowing this- but this is an area that affects everyone who intends to stop working at some point in their life. Study up- its going to impact you, and the more you know the less taken advantage of you will be. I applaud Ana for at least making an effort to learn.
Cenk’s explanation of shorting a stock isn’t quite right.
Shorting a stock is when you borrow the shares from somebody else and sell them, pocketing the cash. But at some point, you have to give those shares back to whom you borrowed them from. So, you’ll have to repurchase them.
The hope is that by the time you need to repurchase and return those shares, the price has gone down.
Message to Ana,
I work for a large hedge fund, and would be happy to help you with any questions you may have about markets.
J.Alexander
I would love if TYT had more content on personal finance & investing.
I agree, Cenk explaining to Anna … its bloody informative..
Imagine if they planned it..
You are 100% correct. TYT needs a progressive show on personal finance. I have recommended this previously. TYT please do a few segments on personal finance. Please!
I suggested this as well.
Love the show generally. But I find it amazing that Ana has such strong views on Wall Street and regulation without knowing the utmost basics of how markets work.
A person can be against guns while not understanding the minutia of how a gun works.
Wtf I didn’t know how to comment. 10:21.
My most hated word… IMPACTFUL. Why the hell can’t you just say effective!?
Ana, you’ve probably heard of “stock options” in a different context to futures and shorting, and this is where an employee will be offered options as part of their remuneration package. Here, the employee will be granted a package of shares (e.g 1,000) at a specific strike price (e.g. $10.00), that will mature sometime in the future (e.g. 3 years). These options are essentially free shares, but you do not really own then until they are have matured (e.g. you cannot sell them and do not receive a dividend – if one is paid – until they have matured).
So, if after the three-year maturity period, the shares are worth more than $10.00, you can sell them (or keep them) and keep the difference: e.g. if the market price is now $11.00, you have made $1.00 per share, and therefore $1,000 is you sell the entire parcel. Typically you be required to declare this transaction as capital income and pay some form of tax on it, but is all jurisdiction-dependent.
If the market value is less than $10.00, then the shares are “under water” and effectively worthless. You can keep them of course and hope that someday they will be worth something, and maybe they will pay a dividend. You can just walk away from them then you owe nothing.
Share options are very common is some industries – Tech and IT for example – as a means of incentivizing employees and boosting their package without actually paying them cash. I know guys that joined companies early, got a bunch of options when the strike price was low and they were able to sell up and pay off the mortgage (or better). And then there’s people like me that had lots of options that never amounted to anything; I’ve got my $3.56 payout cheque pinned to the board in my office as a reminder of what happens when good options go bad.
Big pharma, like Pfizer, e.g., may prosper, but do you really want to be supporting big pharma? I’m dealing with this sort of thing with my bank, which is one of the banks invested in DAPL. I have to locate a nearby replacement. One encounters the morality issue in any fossil-fuel investments one may have. I have begun to divest my holdings in companies of WHATEVER sort whose behaviors I know to be regressive and harmful to people and to the environment. I encourage Ana (and all progressives) to seek to do the same. People over profits, both on the job and off. We must walk the walk.
I think Ana would get a lot out of watching The Big Short
That was a great movie and yes, everyone should see it.
Analytics
Ballpark figure
Bandwidth
Business-to-Business
Business-to-Consumer
Best of Breed
Best practices
Bizmeth
Brand
Brick-and-mortar
Business process outsourcing
Buzzword compliant
Building capabilities/Capability building
Client-centric
Cloud computing
Close the loop
Co-opetition
Come-to-Jesus moment
Content marketing
Core competency
Creative
Customer-centric
Downsizing
Drill down
Drinking the Kool-Aid
Early-stage
Employer branding
Eating your own dogfood
Enable
Entitlement
Enterprise
Event horizon
Eyeballs
Free value
Fulfilment issues
Generation Y
Granular
Herding cats
Holistic (approach/integration)
Home real estate usage for an unoccupied dwelling unit
Hyperlocal
Innovation
Innovative
Knowledge Process Outsourcing
Leverage
Logistics
Long Tail
Low Hanging Fruit
Make it pop
Mindshare
Mission Critical
Management Visibility
New economy
Next generation
Offshoring
Opportunities
Pain point
Paralysis by Analysis
Passionate
Profit center
Return on Investment
Reverse fulfilment
Rightshoring
Seamless (integration)
Serum
Share options
Solution
SOX
Sustainability
Storytelling
Startup
Take Offline
Talent Relationship Management
Touchpoint
Value-added
Visibility
Water under the bridge
The tech ones are especially annoying:
Turnkey Solutions
Web 2.0
Deep Dive
Dark Web
The Cloud
Disruptive
Open the Kimono
thought leader
leveraging
not reinventing the wheel
paradigm shift
take this offline
key metrics
deliverables
actionable items ( i actually like this one… to many meetings are wasted with no actionable plan or accountability)
…aggregate, vertical channels, channel partners, positive growth, thinking outside the box, ……I’ll think of more….
Stock market post game? Put me right to fucking sleep.
My friend had the same feeling about Ford, but his dad wouldn’t let him because he was in high school. I don’t think he has gotten over it.
i wanted to invest in some stocks and i got the same kind of response from my dad lol.
i wanted to invest in some stocks and i got the same kind of response from my dad.
Also the best time to invest is when the markets crash. As little finger said chaos is a ladder.
Ah Littlefinger. He would’ve made a fortune if he was in New York in 2008-09.
Buy low, sell high.
Ana just avoid the bond market because that’s were there are not rules.
The bond market is even more heavily regulated than the stock market, and bond holders, as creditors to a company, are first in line when a company goes bankrupt. Stock holders are last in line. The bond markets are typically viewed as much less risky- but thus less rewarding.
Investors should have both stocks and bonds for a balanced portfolio.