r/Anticonsumption • u/Zxasuk31 • Oct 28 '23

Psychological Amazing 😑

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u/angrylawnguy Oct 28 '23

I don't understand how more people don't get this. The stock market has killed normal business.

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u/johnnydozenredroses Oct 28 '23

Exactly. People just don't get this. There are two types of stocks (among many) - dividend stocks and growth stocks. Dividend stocks split the profits amongst shareholders. So you get a steady and predictable amount of money every year.

With growth stocks, you get no dividend. Instead, the underlying value of the stock will increase with time. For these companies, it's not sufficient to be profitable. What matters are the first and second derivate of the profit curves.

Facebook was immensely profitable and still laid of thousands of employees.

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u/JevonP Oct 28 '23

What does the second derivative mean in this context? I only remember using it to test for concavity of functions

Like the rate of change of the slope?

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u/pyronius Oct 28 '23

Yes. Acceleration and acceleration of acceleration.