Archive for the ‘explainer’ Category
How Stocks Work
Wall Street, NY in 1867
For many years nobody could explain to me the rational basis of the stock market. They told me that prices were controlled by the law of supply and demand. Investors expected the the price of shares in successful companies to rise and so they bought them. This demand then drove the price up. Those who got in early enough would make money when they later sold their appreciated shares. This is all true, but it did not answer my question: why do shares have value in the first place.
Electrical Power and Power Loss
Basic Electrical Units
A volt is a unit of electrical potential. Electrical potential in turn is the force which a power source (such as a battery) applies to a connected device in order to push electrons through it. Electrical potential (voltage) is comperable to the presure which a pump applies to a plumbing system in order to push water through the pipes.