12-30-2023, 10:58 AM
"Other People's Money" is a cool term in business. It's not just businesses; even the government gets rich with other people's money, like taxes from businesses and individuals.
Most big businesses are public limited companies. That means they sold their stocks to the public. People like you and me buy these stocks, giving the companies money to grow. The companies use this money to make more products or offer services, make a bunch of profit, and become even bigger. But here's the thing: they only share a small part of that profit with the people who invested in them.
Before they started using other people's money, these companies used the founders' money to create something lots of people would like. They worked hard and spent a lot of time and money to make their business successful.
So, when you invest in these companies, you're kinda like a part-owner, and they share some of their profits with you. It's a win-win – they get money to grow, and you get a piece of the profit pie!
Most big businesses are public limited companies. That means they sold their stocks to the public. People like you and me buy these stocks, giving the companies money to grow. The companies use this money to make more products or offer services, make a bunch of profit, and become even bigger. But here's the thing: they only share a small part of that profit with the people who invested in them.
Before they started using other people's money, these companies used the founders' money to create something lots of people would like. They worked hard and spent a lot of time and money to make their business successful.
So, when you invest in these companies, you're kinda like a part-owner, and they share some of their profits with you. It's a win-win – they get money to grow, and you get a piece of the profit pie!