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Anonymous asked in Business & FinanceInvesting · 2 months ago

When Einstein said compounding was the 8th world wonder was he referring to stocks ?

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  • 2 months ago

    It could apply to anything that is expected to grow. In the world of investing, that applies to deposit accounts, stock dividends, and other assets that are expected to grow and allow you to add the accrued interest to the underlying principal.

    It could also refer to some biological phenomena, like viruses.

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  • 2 months ago

    No, he was referring to the principle of compounding, which can apply to stocks when any dividends paid are reinvested or when there are stock splits. Otherwise, stocks cannot compound. They can only go up or down in value. If a stock never splits or never pays a dividend that is invested into additional shares, there will never be more shares than what one started with.

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  • 2 months ago

    I think he was referring to interest.

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  • Anonymous
    2 months ago

    Ge was referring to compound erections (ask ur papa if u don't know, it was thing up until like 30 years ago).

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