By Oliver Martin: Financing
A contribution by Oliver Martin
In this chapter, I would like to address a very important topic. It is a topic that people have been talking about for centuries, yet it remains complicated and confusing for the general public. Finance and investments (shares and cryptocurrency). Why is it confusing? Because every ‘expert’ tells you something different. I grew up with maths, but there are far too many opinions and yet so little knowledge.
Here, I will discuss the topic of cryptocurrency and NFTs in more detail. Personally, I have only been interested in equities for decades. Shares are not just about trading; practically every large company in the world works with them. Nevertheless, I am open to learning new things, even if I have little interest in cryptocurrency and NFTs. However, I also see the future in blockchain technology. I will say more on this later.
How many people do you know who use the following sentence? I’m not interested in finance and investments; or I’m not good with numbers, or I don’t have the time to think about it? Really? If we look at it closely, practically everyone in the world is directly connected to the topic. Whether you like it or not. This is even the case in wars like the one currently taking place in Ukraine/Russia or in everyday life in general. So basically it can be said: Finance is everywhere and at all times. Why do you go to work? Because you enjoy it? Maybe. But this only applies to around 1-10% of people.
Oliver Martin loves his work. Do you too?
You go to work to earn money. For yourself and your family. To buy food and to live. I will avoid using technical terms in this article, but I would like to explain clearly what is meant by this and how to deal with it. To achieve this, I am using the Wikipedia definition (I have used partial entries, otherwise this would be far too long and incomprehensible). Why do I use this tool? It is a starting point for understanding how a term is defined. We can then build on this, and I will share my thoughts on how to deal with it. Even if you already work in this industry, it won’t do any harm to read the definition again very carefully. Oliver Martin has over 20 years’ experience in the financial services sector, and this definition is still very important
— you can learn something from it.
Finance & private financing by oliver martin
Definition by Oliver Martin
Finance is generally the collective term for finance and the financial sector, specifically public finances (state finances, municipal finances). Colloquially, it refers to the funds and creditworthiness of economic entities (private households, companies, the state, foreign countries).
Financing according to Wikipedia
Private financial planning refers to the planning of financial expenditure and savings by private households, taking into account the possibility of future risks. Private financial planning includes spending on education, the financing of durable goods such as real estate….. […]
(Note from Oliver Martin):
In this brief definition, it is clear that different areas are combined. Insurance/banking/asset management or private money management skills.
FROM OLIVER MARTIN: STOCKS
A share is a stake in a company (a stock corporation). Shareholders are therefore co-owners who have a financial interest in the company. In return for their capital, the company gives the shareholder a share.
This gives them certain rights – such as the right to have a say (management rights) and the right to participate financially in the company’s success (property rights).
The legal form of this company does not necessarily have to be a public limited company. The European form of public limited company (Societas Europaea, abbreviated to SE), the US Inc. or the British PLC are also conceivable. In France, Spain or Italy, such a company is often abbreviated to SA.
A share price – or stock market price – is the purchase price of a share for a particular company. The price of a share is not fixed, but fluctuates according to market conditions.
Good to know: The first stock exchange was established in 1612 with the Amsterdam Stock Exchange (Amsterdam beurs in Dutch), which is regarded as the first stock exchange to enable permanent share trading in the 17th century.
(Notes by Oliver Martin) And then there are actually still people who believe it has to do with luck!!! Here I lack understanding. This is a very, very old business. And like many other businesses, it can be learned. It only has to do with luck when a person does something he/she doesn’t understand.