The Business of Love

Wednesday, April 04, 2007

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.

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4 Comments:

  • At 10:46 PM, Anonymous Anonymous said…

    Maybe you could consider the importance of TIMING in the social scene. For example, a first love may not work out because the timing isn't right...for example, when a boy is leaving on a mission and the relationship has to end. And what about a coincidence of wants? There doesn't seem to be a common currency in the social scene, so it's highly variable whether an exchange will ever place. Each party must first perceive it as beneficial and have a desire for EXACTLY what the other party is offering in the exchange. Just my thoughts! :)

     
  • At 3:27 PM, Blogger Handsome said…

    Excellent comment. I actually plan on addressing the timing issue it Part II. As for the "coincidence of wants" I totally know how that goes from my many failed offers to certain ladies.

     
  • At 2:49 PM, Anonymous Anonymous said…

    I would agree that timing is of ultimate importance especially in the initial stages of investing in a stock. I have seen many examples of this where things can start out on a bad foot, crash, but ultimately with patience, end well. But what I would actually like to see you address is the import of the nature of those first tentative times that owner and CEO establish contact and check into each others strengths and liablilities. Down the road, when you are more sure of each other, almost anything can fly and much can be forgiven. But if the first date has a weak charge and doesn't grab the investor's attention and stand out in his or her mind, you can often say "ta ta" to said investor. So, if you think there may be a future with a certain buyer, that first presentation should merit some time and creativity in designing an optimum opportunity to present your presonality and other strengths in the very best light.

     
  • At 3:04 PM, Anonymous Anonymous said…

    One other question on the business of love...
    Do you agree or not, that before one has fallen head over heels, it is avisable to learn whether or not there are any serious medical causes for concern in the family line? I can count 5 family friends right now whose lives are miserable and never would have married who they did had they known there was incapacitating depression in the spouse's genes and now most of their children are afflicted (can't get out of bed, hold down a job, move out of the house in their late 20's and 30's, etc) Once you become committed emotionally of course, it's too late. But isn't a little detective work on the CEO's portfolio at the family reunion a good investment so that what carries high appeal at face value doesn't end up being a junk bond or lead to a bear market?

     

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