What exactly is a stock?
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-If you purchase stock in Google, you own a small fraction of Google.
-When you purchase stock, you’re buying a piece of the company.
-People buy stock in order to invest
-Companies sell stock in order to gain revenue (money to build/grow the company)
Example
-A person starts a candy cane company, invests a lot of money, and the company is worth $100,000
-In order for this company to grow larger, it needs more equipment and employees
-The company needs more money to get the equipment and employees
-Instead of going to a bank to borrow the money, stock comes into play
-The candy cane company sells stock (or pieces of the company)
-Other people invest in the company and in turn, own part of the company
-The investors are looking for a financial gain
-If the company doubles its revenue, the investors also double their money (i.e. if one person invested $30,000 that initial investment is now worth $60,000)
-The investors benefit as the company grows
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After watching several super confusing, even though they used too much graphics, i found this one the best.
Great video Sasha! Keep up the good work.
Thank you sir ❤
Sasha, you and a few others are the most transparent with how you explain this. Appreciation ?
So if I gave 30,000 and the company goes bankrupt, do I just lose the 30,000 or do I have to pay more than 30,000 for any reason
this doesn't explain enough
it doesn't talk about the initial stock purchase compared to how the stocks change in value over time
take the case of BYND
they offer at $25 a share and the value of the stock rose to over 200 a share at some point. does that mean that the company BYND gained more capital to use? not explained
what happens when a company has no value because it is not profitable like BYND, does that mean that the stock values are zero? not explained
thank you so much :*
Hi, does it mean that if for some reason people don't want to buy stock of a company i.e. no demand for that stock still the value of stock increases if the company grows financially…? Trying to understand this for quite some time….
Yeah, but people buying stock are buying thin air no matter how valuable the stock is. I always thought a stock was a share in the profits but it isn’t. Even dividends aren’t always given out. So, what exactly is it (stocks) people are trading and buying?
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financial money lmao
You made it so easy to understand..we thank you
Love this illustration
this helped me alot with my school work
I still don't understand. So the Investors don't get paid every month or annually? how do the investors use money?
Not a good example bruh …… Just saying…
Mom you are so cute you to dada
????
beautiful thank you so much for your help!
Invest in establish trading companies
Thanks for infarmeshan
Mind blowing explanation THANK YOU!!
I’m confused. How can you own a part of a company? I thought you either own the company or you don’t. If you own a part of the company, does that mean some of the profit the company makes goes to you?