Stock that is presently worth less than a U.S. penny might go up to a penny?
Quote:
Originally Posted by
boomcreek
When market conditions open up in Iraq, the value of the services or goods your company markets will also open up...i.e. increase in value. When people have the money to purchase goods, demand will rise. When demand goes up, supply will go down due to increased purchases, when supply goes down, the value of what is left in supply will likewise go up. In other words, what use to be worth 3 dinars, tomorrow could in essence be worth double, triple, or even quadruple the current value. All the market forces play a part in driving the price higher.
Yes, I understand that stock that's worth a fraction of a U.S. penny could go up to a U.S. penny, but do you see that it will still only be worth a single, solitary U.S. penny after a 1 to 1 reval?
A 1 to 1 reval will make cash Dinar worth 1,000 times their present value, while the value of most of your stock will still be a U.S. penny or less per share.
What's so cheap about paying $36 million U.S. for a company in a war zone?
Quote:
Originally Posted by
rickey1
well to start off with, i dont understand how they are going to open the isx up over there. people will be buying into companies really cheap and for as the stock going up on these companies, you need to have a stable country for this to happen or you're just spending money for nothing(hoping to hit the big one). i think they need to revalue the money again to have a stable economy over there so their money will be worth something. the media doesnt tell you about all the good stuff thats going on over there with rebuilding iraq all they tell you is the negative.
keep your heads up and hope for the big one
If a bank, Warka for instance, as another member stated has 12 billion shares of stock in circulation at 3 Dinar per share, that's a value of $36 million dollars U.S..
What's so cheap about that?
They're in a war zone.
You couldn't even visit the building, if you bought it for $36 million.
Well, you could. It's just that your chances of surviving the visit would be extremely low. :wink:
Stock is one kind of an investment and currency is another.
Quote:
Originally Posted by
Xman1
It seems to me that a downward revision of the value of stock in an upward revaluation is the same as a lop. Yes?
Once you've bought stock, you no longer have Dinar. You have shares of stock.
The value of your investment is based on the value of the company you invested in. The value of your stock doesn't have anything to do with the value of the Dinar.
If the value of your stock is expressed in fewer Dinar, after a significant reval, in order to reflect the new strength of the Dinar vs the U.S. dollar, you won't have lost anything. You just wouldn't earn the windfall profits that Dinar holders would.