The Trading Stocks
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
Please correct my example as needed and tell me what I’m misunderstanding.
Thanks for your time guys!!
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 …
Thank you for that down to earth explanation! … what IF, you could make
money on the way up… AND on the way down? :)
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?
*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)
Cheers mate! Finally a video with basic understanding in contemporary
embellishments videos around.
They don’t explain this completely. How can there be more buying then
selling if every sale needs both a buyer and a seller.
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?
Great video, thank you :)
This was so clear! Thank you
Love you man
i don’t understand how number of share buying and number of selling can
Nice video. Thank you!
very nice common craft video
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
finally …. now i’ll be able to understand all those up and down indices
in the news paper daily thanks to u a lot
what is an OTC stock and how does it tie into this stuff
So the price of stock depends on how much people want it because the
company is doing well?
I didn’t know Slenderman trades stocks…
Seems like a way to gamble publicly if you think about it.
Thanks this video was very handy!
When companies do really good yes they share the profit with shareholders
called dividend apple recently paid $8 a share to shareholders
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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