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Pretty sure nobody uses logarithmic graphs for stock prices...



All serious investors do. Anyone who doesn't is misleading themself, which is a good way to lose money.


Funny, it never came up while earning a finance degree.


Seriously? That's a pretty large lacuna in your education. You should complain to your school.

At least it's pretty easy to learn about it on your own. Once you do you'll rarely use linear graphs anymore.


Well, having gone to a top-15 bschool, I'd expect that if it were really so prevalent, that it would have come up, at least once. Especially from the prof whose class was interrupted by reporters for the local news companies. (This was 2009...)

I've used logarithmic graphs heavily in server and system analysis. Sometimes it's incredibly useful, and sometimes it's completely worthless. It's not like one is more useful than the other, each show the data differently, and each view has its uses.


A logarithmic graph scales by gain/loss per dollar, which is often more illuminating than the gain/loss per share.

E.g. a $10 share going up to $20 is much better for investors than a $110 share going up to $120, even if the absolute gain is the same.


Ah, so it's a badly-worded view. It could be called a "gain/loss graph".

That perspective would be much more useful in business. It's so useful that car dealerships have been fighting the same idea - the change from MPG to Gal/100mi.


> bschool

Well there's your problem.


Absolutely. People still believe them "schools" give them proper education. Oh well..


Lots of schools do. Not business school so much.




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