The Stock Market: Part I

One of the most interesting phenomenons in the business world is the stock market. Millions of shares change hands every day and billions of dollars are made and lost for sometimes dubious reasons. Does this sound like anything you know?

The Stock Market = The Social Scene

I have yet to find anything in the usually sane and logical business world that mirrors the social scene quite like the stock market. Just imagine that you are a stock. You have a valuation, a price on the open market, a history, and are constantly changing just like any company. So let's work through a little example for illustrative purposes.

Handsome Inc. (ticker symbol STUD)

This company is very attractive to investors, aka "the ladies". Analysts (friends and family who have an in-depth knowledge of the company) describe the company as tall, dark, and handsome. Deeper analysis also shows this company to be on very solid financial footing. Cash flow is positive and assets are growing faster than debts due mainly to the fact that the company has graduated and is working full-time in the marketing field. The company has been on the market for some time, and despite a couple of potential purchasers, interest in the company has been low.

So you see, the language of the stock market can accurately describe the social position of an individual. In our next post we'll look at a hypothetical scenario between a company and a potential investor.

Leave a comment and I'll address it in the next post.