1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How does the square mile generate money?

Discussion in 'General Discussion' started by jsmoke, Jun 11, 2019.

  1. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    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?
     
  2. mjt

    Capodecina

    Joined: Aug 31, 2007

    Posts: 17,582

    I believe you've answered your own question there.
     
  3. Selekt0r

    Wise Guy

    Joined: Oct 18, 2002

    Posts: 1,671

    Location: Kent, UK

    Indeed - Charging Interest, Charging Fees, Buying low and selling high etc...
     
  4. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    But what are they buying/selling?

    Does that not mean other countries are making a loss?
     
  5. Orionaut

    Soldato

    Joined: Aug 2, 2012

    Posts: 6,523

    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!)

    :/
     
  6. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    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.
     
  7. kinobestew123

    Wise Guy

    Joined: Feb 6, 2008

    Posts: 1,599

    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).
     
  8. Raymond Lin

    Capo Crimine

    Joined: Oct 20, 2002

    Posts: 62,940

    Location: Wish i was in New York

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

    Isn't that a bit ironic?
     
  9. kinobestew123

    Wise Guy

    Joined: Feb 6, 2008

    Posts: 1,599

    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.
     
  10. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    I suppose it is.
     
  11. Feek

    Commissario

    Joined: Oct 16, 2002

    Posts: 26,359

    Location: In the radio shack

    Oranges.
     
  12. Cleisthenes

    Soldato

    Joined: Jul 29, 2013

    Posts: 7,162

    Location: TN1

    Could be all sorts. Commodities, gilts, futures, etc etc etc. The list is very long
     
  13. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    So basically a ponzi scheme.
     
  14. Evangelion

    Capodecina

    Joined: Dec 29, 2007

    Posts: 21,902

    Location: Adelaide, South Australia

    How do you come to that conclusion? No, it's not a Ponzi scheme.
     
  15. Raymond Lin

    Capo Crimine

    Joined: Oct 20, 2002

    Posts: 62,940

    Location: Wish i was in New York

    But you don't know what they do….
     
  16. The_Abyss

    Capodecina

    Joined: May 15, 2007

    Posts: 11,272

    Location: Ipswich / Bodham

    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.
     
  17. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    It's getting clearer, selling future prices, gilts, bonds, stocks, anything that a market can be created for. Does the Internet not kill a lot of business for these companies, online trading and the like.
     
  18. Diddums

    Capodecina

    Joined: Oct 24, 2012

    Posts: 17,919

    Location: London

    Go watch the Wolf of Wall Street, great documentary.
     
  19. jsmoke

    Soldato

    Joined: Jun 17, 2012

    Posts: 7,063

    I've seen the film but a good while ago also read bits of cityboy but again a good while ago. I forget.
     
  20. Evangelion

    Capodecina

    Joined: Dec 29, 2007

    Posts: 21,902

    Location: Adelaide, South Australia

    No, it makes their business even easier.