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    This video explains a bit about stocks http://www.youtube.com/watch?v=fn3y1hNVgA4
    Generating money for shares in your businesses, I understand this... so in this example I open a bakery, needing 100,000. I have 10,000 and get 9 friends to each give me 10,000 for 10% of the business.

    Whatever profit I make, each friend will get 10% each? And is the 10,000 they have bought 10% of the business with a one off payment?

    1 year later, the business is worth £1,000,000; each 10% share is now worth 100,000 if I wanted to buy 10% back of someone I need to pay them 100,000 (they have made £90,000)
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    (Original post by R1C3W1N3)
    This video explains a bit about stocks http://www.youtube.com/watch?v=fn3y1hNVgA4
    Generating money for shares in your businesses, I understand this... so in this example I open a bakery, needing 100,000. I have 10,000 and get 9 friends to each give me 10,000 for 10% of the business.

    Whatever profit I make, each friend will get 10% each? And is the 10,000 they have bought 10% of the business with a one off payment?

    1 year later, the business is worth £1,000,000; each 10% share is now worth 100,000 if I wanted to buy 10% back of someone I need to pay them 100,000 (they have made £90,000)
    Yes, think of it as buying a house.
    If you buy a house for £10,000
    and you're receiving £200 a week rent (income - if we are talking about shares then this would be dividends)
    If the housing market is in a boom and prices have gone to £20,000
    you would sell your house and make an extra £10,000

    Going back to the shares content, yes it is a one off payment but they can invest more in the future if they want but that means they would earn more of the business.
 
 
 
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