The stock market operates on the principle that when a company is profitable, investors buy its stock, driving prices up; when a company loses money, investors sell their stock, causing prices to fall and potentially leading to bankruptcy.
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Stock Market Simplified — The Core Logic Everyone Should Know #cat #investorfirst #funny #animationAdded:
Kitty wants to run a small fish shop, but Kitty not have money. Now Kitty have idea. Kitty rob bank.
But Kitty fail. So Kitty has come up with another solution. Kitty divide fish shop into pieces and sell the pieces to other Kitty. Now Kitty have money. Other Kitty is also own a part of shop. This part is called stock. If Kitty shop is constantly profit, more Kitty's will buy this stock. This keeps the price rising.
If Kitty's shop is constantly lost, Kitty's will sell their stock. It makes stock price low and no Kitty buy it. In the end Kitty will go bankrupt. This is the stock.
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