What are stocks, taxes, and frogs?
Your brief introduction to stocks and taxes. And frogs.
I asked my 60 Instagram story viewers, “what’s something about money that makes no sense to you?”. My girlfriend kindly replied with “taxes.” Two of my closest friends wrote “stocks” and “frog.” Thanks, guys. Let’s get into it.
What are stocks?
A stock is NOT a physical thing. Not anymore at least. All a stock represents is a piece of a company. Buying (technically investing in) a stock means you now own a small share of that company. That’s it. The stock will go up or down in price for a variety of reasons. Two of those reasons are company performance and popularity. If the company is doing really well, the stock price might increase. If a lot of people (popular) want to invest in the company, the stock price might increase. The opposite is also true.
Boom. Stocks? Done.
What are taxes?
There are a LOT of different types taxes, but the one most people care about above all is income tax. Simply put, aside from annoying, this is a mandatory payment you must give to the government based on the amount of money you make each year. That’s the easy part.
Here’s how it’s calculated. The U.S. has a progressive tax system. Not progressive in the sense of political stances, but in the sense that the tax rate gets progressively higher as your income increases. You are also taxed differently depending on your filing status. The most common ways to file are single (aka my little brother - sorry) or married filing jointly. Then, there are the tax brackets. These brackets break down your taxable income into different boxes, with each box being taxed at a different rate. Essentially, some of your money will be taxed at x%, some taxed at y%, and so on. All those amounts sum up to your total tax liability.
Boom. Taxes? Done.
What is a frog?
Not to be confused with toads, a frog is an amphibian living both on land and in water. The main difference between a frog and a toad, aside from spelling and pronunciation, is frogs can jump better. Frogs are also smoother and less dry than toads. Frogs also didn’t give me warts as a kid - toads did. Their life starts as a tadpole and through metamorphosis (not in the Kafka way), they turn into leaping, smooth, moist, green, four-legged amphibians. As for diet, that’ll depend on the size, habitat, and environment of the frog.
Cool fact: since tadpoles are mainly herbivores and frogs are mainly carnivores, a frog’s diet is sometimes referred to as “life-history omnivory.”
Boom. Frogs? Done.
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Disclosures:
The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through Just Advising LLC, an investment adviser registered with the Securities and Exchange Commission / the state(s) of North Carolina.
The tax information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult a tax professional regarding your specific tax situation.
