Btw for those who want to look into the legal side more, the process of Bob being inspected through the Washington court is call Incorporation (the process of turning a 'business' into a Corporation). Good vid keep it up.
@abram1405 When they sell their stock back to the company, it will be worth more than they originally bought it for. Imagine it like buying a piece of candy from one person for 50 cents, then selling it to someone else for a dollar
@Ace72o Sorry for the slow reply, I haven't been on much lately. If you mean you would get your money back and then some, then yes. Think of it like this very simply: If you buy a silver coin worth that 40.05, and the cost rises to 100 dollars. You sell it back to the pawn shop or whatever you bought it, and they give you 100 dollars. When you invest in a company you literally do OWN a PART of that company. It may not be a large part, but it is a part.
@TheSonnng The way the company's worth increases is by the actual success of the company. It increased from 1m to 5m because of its own success. The way that his business repays the bank is by the money that he makes from his new business. The investors are important, however the meat of the money here is from the actual product that the business sells. And your questions weren't stupid or anything, and I'm glad to answer anyone's questions!
@TheSonnng Every company has to start off somewhere, and owning stock early in a company that is worth $5 a share is just more power to you if you sell it back for $100 a share. Anyone that buys it at $100 a share isn't making as much money as you have, but from 5 to 100 is a really large return. Most people invest in companies when they ARE at around 100, then when the stocks rise to 150, that is a good enough return to make money. Quadrupling your investment isn't very common
I really liked the drawing. But the last part was confusing when selling back the stocks; who buys them, the owner of the business or other people who decides to invest in the business??
I liked the pace you use to explain the subject, very clear. Now, what classes may I attend to learn more about finances??
@saigon187 Sorry for the slow reply. If you haven't already gotten your answer yet here it is: You can trade stocks online, in person (only you'd have to be in NYC to do that), or have a stock broker do it for you and meet with him in person. The best place in my opinion is to trade online, where you won't need to pay a broker. Granted, a lot of websites do still charge money, it isn't nearly as much as brokers do
so if you buy one $5 stock in lets say january when the company was worth $5 million. Then lets say 2 months later month lthe company became worth 20 million like you said. Do i make a $15 dollar profit. I understood all your information and drawing but Im a bit confused as to how you actually make a profit. And what if i don't want to sell my stock. I still make a profit right?
@Bsingh1315 you only profit from the sale. its like having a house thats worth 500 million the value is there but you dont have the money until you sell it.
@Bsingh1315 Basically imagine it like Gold, for example (which is an investment). If you buy some gold now for 200 dollars, and the value of that gold raises to 250, yes you have made money. But since you can't go to the grocery store and use gold to buy things, you have to sell the gold to get the value of it. It's the same with stocks, once you sell the stocks back to the company, you it's like selling gold and getting your money (and plus some) back. Hopefully I explained that well =)
Btw for those who want to look into the legal side more, the process of Bob being inspected through the Washington court is call Incorporation (the process of turning a 'business' into a Corporation). Good vid keep it up.
badgerdudeman 1 week ago
How do the investors gain more then what they gave??? new to this sorry
abram1405 1 month ago
@abram1405 When they sell their stock back to the company, it will be worth more than they originally bought it for. Imagine it like buying a piece of candy from one person for 50 cents, then selling it to someone else for a dollar
MrThomasWarnock 1 month ago
@Ace72o Sorry for the slow reply, I haven't been on much lately. If you mean you would get your money back and then some, then yes. Think of it like this very simply: If you buy a silver coin worth that 40.05, and the cost rises to 100 dollars. You sell it back to the pawn shop or whatever you bought it, and they give you 100 dollars. When you invest in a company you literally do OWN a PART of that company. It may not be a large part, but it is a part.
MrThomasWarnock 1 month ago
@TheSonnng The way the company's worth increases is by the actual success of the company. It increased from 1m to 5m because of its own success. The way that his business repays the bank is by the money that he makes from his new business. The investors are important, however the meat of the money here is from the actual product that the business sells. And your questions weren't stupid or anything, and I'm glad to answer anyone's questions!
MrThomasWarnock 1 month ago
@TheSonnng Every company has to start off somewhere, and owning stock early in a company that is worth $5 a share is just more power to you if you sell it back for $100 a share. Anyone that buys it at $100 a share isn't making as much money as you have, but from 5 to 100 is a really large return. Most people invest in companies when they ARE at around 100, then when the stocks rise to 150, that is a good enough return to make money. Quadrupling your investment isn't very common
MrThomasWarnock 1 month ago
I really liked the drawing. But the last part was confusing when selling back the stocks; who buys them, the owner of the business or other people who decides to invest in the business??
I liked the pace you use to explain the subject, very clear. Now, what classes may I attend to learn more about finances??
ATGOD2007 2 months ago
great video i just want to know where exactly can i buy stocks do i do it online and how do i get set up.
thanks
saigon187 3 months ago
@saigon187 Sorry for the slow reply. If you haven't already gotten your answer yet here it is: You can trade stocks online, in person (only you'd have to be in NYC to do that), or have a stock broker do it for you and meet with him in person. The best place in my opinion is to trade online, where you won't need to pay a broker. Granted, a lot of websites do still charge money, it isn't nearly as much as brokers do
MrThomasWarnock 2 months ago
so if you buy one $5 stock in lets say january when the company was worth $5 million. Then lets say 2 months later month lthe company became worth 20 million like you said. Do i make a $15 dollar profit. I understood all your information and drawing but Im a bit confused as to how you actually make a profit. And what if i don't want to sell my stock. I still make a profit right?
Bsingh1315 4 months ago
@Bsingh1315 you only profit from the sale. its like having a house thats worth 500 million the value is there but you dont have the money until you sell it.
jusprag24 4 months ago
@jusprag24 so it is more like an asset instead of actual money in the bank...?
raivey88 2 months ago
@Bsingh1315 Basically imagine it like Gold, for example (which is an investment). If you buy some gold now for 200 dollars, and the value of that gold raises to 250, yes you have made money. But since you can't go to the grocery store and use gold to buy things, you have to sell the gold to get the value of it. It's the same with stocks, once you sell the stocks back to the company, you it's like selling gold and getting your money (and plus some) back. Hopefully I explained that well =)
MrThomasWarnock 4 months ago 2
@MrThomasWarnock Yeah thanks. I got it. Thank you very much.
Bsingh1315 4 months ago