How does the square mile generate money?

Soldato
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It apparently generates a large amount of the overall tax revenue.

There's trading, auditing, banks, private equity and hedge funds I get that but how and where from do they generate their money?
 

mjt

mjt

Soldato
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It apparently generates a large amount of the overall tax revenue.

There's trading, auditing, banks, private equity and hedge funds I get that but how and where from do they generate their money?
I believe you've answered your own question there.
 
Soldato
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7,809
By fooling people!

But what are they buying/selling?

The idea that they are buying and selling something that is important and actually has a value.

The funny thing is that it sort of works,

Even though it is total nonsense!

(Like Bitcoins, Carbon credits, and all the other nonsense!)

:/
 
Soldato
OP
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By fooling people!



The idea that they are buying and selling something that is important and actually has a value.

The funny thing is that it sort of works,

Even though it is total nonsense!

(Like Bitcoins, Carbon credits, and all the other nonsense!)

:/

Give me an example. I know city analysts try and get their clients to buy stock/shares for example I can understand that however what else goes on, surely it's just a central point for money matters and these companies could be spread out all over the country. So to say that the city is a key assets to tax revenue is a bit false it's more a case of it's a central hub.
 
Associate
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The firms sell a service to people as opposed to goods. It's as simple as that really.

Investment funds for example are providing a service investing other people's money in the hope that the ivestments they make do better than the person could do themselves because the investors are experts.

Auditors for example are providing a service forming an opinion on financial statements which is mandatory for companies above a certain threshold.

If you're talking about what are banks and investors trading though (which is a different question) then it can be a range of things like shares in companies, bonds, options, futures, forwards, etc. The value of these comes from an underlying commodity such as the value of the company, interest rates, exchange rates or other commodity prices (for example gold, oil, or steel market prices).
 
Caporegime
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Give me an example. I know city analysts try and get their clients to buy stock/shares for example I can understand that however what else goes on, surely it's just a central point for money matters and these companies could be spread out all over the country. So to say that the city is a key assets to tax revenue is a bit false it's more a case of it's a central hub.

How do you know it's "a bit false" when you don't even know what they do?

Isn't that a bit ironic?
 
Associate
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surely it's just a central point for money matters and these companies could be spread out all over the country. So to say that the city is a key assets to tax revenue is a bit false it's more a case of it's a central hub.

Yes, but it's only like why you find car showrooms close to each other and high street shops all together on the high street. It makes more sense to be together.
 
Soldato
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As has been said many times before, money is like a bar of soap. The more hands that touch it, the smaller it gets.

There are many hands in the City, but importantly, lots, and lots, and lots of money.
 
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