Bob has an idea on how to make some extra cash. He pawns $30 at the local pawn shop for $15. Then he goes to the pub next door and sells the $30 pawn ticket to Jim for $20. It looks like both make money on the deal. Is that true? Who gets the short end of the transaction? Is it Bob, Jim, or the pawn shop?

I'm obviously retarded, but what exactly is a pawn shop?  When you say that Bob "pawns" $30 for $15, what does that mean, and what is the point of such a transaction?

 

Posted by tomarken on 2006-04-11 16:30:40