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Kathris

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About Kathris

  • Birthday 11/29/1987

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    Nigeria
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    Nigeria

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One way to take a temporarily free resource to use is to go to the capital market and issue securities. In this way, the corporation exchanges financial assets for real assets.

One party gets the resources it needs to pursue its projects and increase the value of its business. The other party is financially rewarded for giving temporarily free money to use. I call this "lending money."

In the investor's mind, money is supposed to be his means of production or something like that. He owns the financial assets that bring him money.  https://www.forextime.com/trading-instruments/stock-trading

The reason for writing the post was a question of my acquaintance, who was at a loss as to why create capital not to spend it. I realized that a lot of people think this way, not understanding why capital is needed. The traditional point of view - to collect for an apartment, a car, a vacation and other pleasures of life, but certainly not for the money to bring money. Despite the fact that she herself is in business.

Remember, your capital is a business! Only instead of the means of production you own financial assets like stocks, bonds or deposits, and they in turn own the means of production and other financial assets. Therefore, you must treat your capital as a business. Imagine you are sewing clothes and because you are having temporary financial difficulties, you decide to sell your sewing machines. Yes, you will solve the difficulties now, but how will you earn further.

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