Recent comments in /f/dataisbeautiful

TinKicker t1_j2d9jsc wrote

Don’t forget the HKG is the central hub of two regional airlines and a major international airline (Cathay Pacific).

While IND is home to a Delta Air Lines regional affiliate (Republic), it doesn’t serve as a hub to the flight operations, but merely the corporate headquarters.

How Cathay Pacific is surviving today is a total mystery to me.

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Yeti-420-69 t1_j2d4zyj wrote

You have a lemonade stand. Between your 100lbs of lemons, 18 kilos of sugar, some ice cube trays, a table, and the earning potential it has over the next few months, you figure you could sell the business for $1000. This is your 'market cap'.

You want some cash right now to buy a new sign to go over your table and some other things so you decide to 'take your business public' and let 3 of your friends buy in. You split the company into 4 equal 'shares' and value them at $250 each.

Over the summer you all take turns working the stand, you reinvest the profits and open a second stand. Everything is going great until fuckin' Steve decides he's done working, wants to divest of his part of the company and relax until school starts up again.

The company is bigger now, has more inventory, more growth potential, more revenue, cash on hand from recent sales, you all decide to value it at $4000. Now if someone had $1000 they could purchase his share for themselves, but nobody has taken any profits, so instead the company buys back his share with that cash on hand. So by spending $1000 the company is now worth $3000 and is split 3 ways as that share was destroyed. Your shares are still worth $1000 each but now you own a larger piece of the company. This will mean a larger cut of future profits in the form of dividends and greater growth potential in the price of the stock, as future valuations will divide the market cap by 3 instead of 4.

I'm stoned and that seemed like a good way to explain it lol I hope it makes sense.

Edit: and I'm not American but isn't a 401k just a type of retirement account? They're just going to hold index and mutual funds.. those don't 'lag' the market, they're just collections of different equities and bonds.

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