– What do investment banks really do?
In: Economics
You’ve spent $10 to invent a new doodad that you know a million people will want and pay $50 for.
You don’t have $10 million dollars to make all those doodads, so I give you $10 million if you agree to give me half of the money from selling all the doodads. Together we spend $10 million, to get $50 million.
We each end up with $20 million from selling all the doodads.
Latest Answers