25 thoughts on “Stock Markets in Plain English Animated.mp4

  1. Hello I have a question about how stock prices (shares) increase and or
    decrease. Let’s say I plan to start a company yet have no money so I sell
    10 shares for $10 each. Assuming all are sold I have $100, which I use to
    create my company. (So the company is worth $100?) Then let’s say my
    company is successful and I make $200. (Now the company is worth $200?)
    Here’s where I get confused. From my understanding their are 2 outcomes.
    1. The share prices double from $10 a share to $20 a share. Thus anyone who
    sells the stock makes a profit. But if all of my shareholders sell there
    stock, and I lose my $200, thus no profit and I’m broke???

    2. The share prices stay at $10 and I make a profit and possibly the
    shareholders if I add a dividend (which can’t be anything too substantial).
    My profit is $100 yet the shareholders is close to none so the share prices
    don’t increase???

    Please correct my example as needed and tell me what I’m misunderstanding.
    Thanks for your time guys!!

  2. It might be in a plain English but still not plain enough … Let me make
    it extremely easy to understand …

    Here it goes :- There is a company which has fixed amount of shares lets
    say “100” if more people try to buy that shares then companies will sell
    them at higher prices … because they can and more people are looking for
    that share … but lets say the same company having 100 shares in the
    market and all the people who has 100 shares wants to sell and there are
    very few people who wants to buy shares then the buyers can get the same
    share at lower price because there are lots of shares in the market and no
    buddy wants to buy them …

    This is nothing but basic human physiology … you might think that share
    prices are changing but basically its just a share popularity which is
    changing … Thats all … 

  3. Thank you for that down to earth explanation! … what IF, you could make
    money on the way up… AND on the way down? :)

  4. But you haven’t explained why people would buy them? If i bought a share
    from a company i see potential in, what happens? Do they give me money back
    because i bought shares? How does that work? And who do i sell shares to?

  5. *Stock Markets 101*

    If you need a high-level explanation of stock markets, you may find this
    YouTube video worth watching (3:43 – posted 9/17/2011)

  6. They don’t explain this completely. How can there be more buying then
    selling if every sale needs both a buyer and a seller. 

  7. So its not really share of a company I mean let’s say I have 10% shares of
    specific company I not really owning anything I don”t have vote or I can’t
    really do anything in that company right? And if I keep the shares not
    selling I don’t recive any % once an year from company’s income as owner of
    10%?, or if company sold do I got money from that?

  8. I’m ur typical boxers with only 2 brain cells and i understand this very
    well. Thank you, now its time for me to invest! :D

  9. finally …. now i’ll be able to understand all those up and down indices
    in the news paper daily thanks to u a lot 

  10. When companies do really good yes they share the profit with shareholders
    called dividend apple recently paid $8 a share to shareholders

  11. Do shares give you anything additional other than profit from selling it
    later? I’ve heard of dividends. Do dividends give money to share owners
    every once in a while? I’m just wondering if shares have any additional
    value other than selling them later.

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