Trading 101: What is the Stock Market?

Trading 101: What is the Stock Market?

A basic question and concept for sure, but for those people who want to start at the very beginning, this video will explain all about what the stock market is, and how it can allow traders and investors to make money.

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Yared Alemu says:

Nice description.

konquer247 says:

And if you know before hand that another study would come out that disproves the pepperoni study, then its the best opportunity to by a pepperoni slice at $0.25.
Very simple and text book example. Great explanation.

K162KingPin says:

So once a company “goes public” there must be a set number of shares that are being sold right? How many? Is it arbitrarily decided by the CEO? If there are 20,000 shares in the company are they all for sale? Is it customary for the company to hold on to 51% of them or more? or less?

Can they demand that people sell them their stocks back to them? Can they arbitrarily generate more shares? If there were 20,000 and they were all sold can they pull another 20,000 out of a hat and sell them too? What would that do to the price of the ones you own? wouldn’t it cut them in half? If they decide to say double the stocks and that is possible basically making smaller slices would that double the amount I own? If i had 100 shares would I automatically have 200 then. Are announcements made before something like this happens? Is it up to the shareholders or the CEO?

Ideally you want to buy low and sell high. What if the price seems to be dropping and I want to sell. Is that automatic or must there be another investor ready to buy the number of shares I’m trying to sell in order for me to sell them. Or does the company have to automatically buy them back from me. For example I have 100 shares in the company and the price is dropping. I try to sell them before I lose to much money. Is there a situation where I can’t sell because everybody else sees the price going down too and nobody wants them?

What about buying. Based on the price can I buy all the stock I want? Is there a situation where there is none available or does the company keep generating more to fill the demand of all who want to buy.

What happens if a company goes under? Do you just throw up your hands, cry a little, and toss the shares in the trash? Or are you entitled to a percentage of the salvage of the assets of the company. I mean what if Microsoft went under over night. They have billions in assets. Does that get somehow divided up among the shareholders or do the banks or government swoop in and grab it leaving the shareholders high and dry.

Do you make any money from the you shares based on the profit of the company? I mean if I own 1% of the shares for a company and they make a profit of $100 a day. Do I get $1 of that as my share based on the stock I own? Or does the profit simply go to the CEO to distribute or keep as he sees fit?

What kind of percentage return could someone reasonably expect from the stock market for what would be considered relatively safe, medium, and relatively but not too risky stocks. 1%? 5%? 20%? How much money would someone need to invest in each of those area to make a profit of around $100 a day or $200 a day. (imagining most people could live on that)

Kim. says:

Question! Who decides which “pizza” is worse than the other in the real stock market?

Patel Vidhu says:

Stock market is business where intelligent promoters and traders earn money and small retail investors lose it.

Meghan Larsen says:

Stock market is pizza. Got it. <3

ha oh says:

Buy low, sell high.

Marisafashionista101 says:

excellent analogy!

Diana Reyes says:

This was by far the best explanation . Thanks

Pedro Velasco says:

So the shares go down in value because they lose sells of pizzas or could they be selling the same and just because a chef said it sucked the value went down??

EddieShadow says:

yeah… I’m hungry now

Kap Caleb says:

you got me at “junior youth leader at my church”/ subscribed

BruMedia Design says:


Nobody Said says:

Thanks for this! Really helpful.

Maria Mthethwa says:

Wow thank u

Marco JHH says:

will the price of my share stay the same for a long time or will it change a lot

Binaya Paudel says:

What if I buy a stock that’s worth more than half the company’s total worth? Would that means I am now the owner of company? And would that means I would also be receiving profits that the company makes without me even trading my stock?

Kbleu Aceres says:

Where to find companies who opens in public to investors?

Francis Pepito says:

nice, very simple

Chlopaczek Hula says:

bacon is the best pizza ever!!! It’s not goofy or meh!!!

D-Angel The 1 says:

it would be a big help.What are the best sites or apps to start Buying and selling shares. Thank you

Mayakia Anderson says:

This was a great way to explain it to childern also. Love it !!! Thank you

Kishan Danniel says:

hey, just to ask, do you do stock investment?

CPtv says:

Thanks Clay! This video was thorough as well as informative! What are some of you favorite companies to invest in?

Ansari Amir says:

If i buy a share of a company and i am not selling it, then what will happen??
Can i get some share from the companies profit, if YES, it will be monthly or annually??

Snaips says:

Thanks man great explanation!

Timsie Ho says:

I couldn’t focus because of those arms

W A says:

Way. Too. Long.

Tylah Gains says:

Thank you.

Nestor Romero says:

So just because buying popular stocks like Apple doesn’t necessarily mean you are in the safe side?

Kim. says:

I see! Its risky…

Michele Gubian says:

really nice! you have a talent for explaining things in a simple way!
May I add a remark: overly excessive and basically unnecessary use of double quoting with your fingers…

Rugved Reddy says:

Nice and elegant!

hawaalaina says:

coool ….very cooool..great job

Babitha Hameed says:

The video helped me a lot
Thank u soooo muchh

Trisha Kambanei says:

Great explanation thanks 🙂

Pedro Rodriguez says:

you lost me with the orange pizza.

Kim. says:

Wow… so its like the lottery? (luck?)

hghershey says:

Best explanation of the stock market for dummies. Thanks.

Scooby Doo says:

I’m 22 years of age, and I am trying to understand the way the market works and how to get into investing in general and I had to thank you Clay because I can honestly say that I understand what the stock market is now and you made it so simple. I am becoming more and more fascinated every day about the economical system and the psychology of the markets and your videos are gems! Thank you very much!

Kim. says:

I wish all of my classes were taught using food references. I would be a genius already

Standard Trevor says:

This is the first time I’ve heard someone explain this to me and I got it. Thank you.

kronos ken says:

for someone without alot of funds, would it be a good idea to invest, or save until you have more money to work with?

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