14. What is a Stock?

[whatisstockexchange]

thanks

[DreadAces]

i dont even know what equity means :(

[savingandinvesting]

@DreadAces Check out videos 3, 11 and 17. Hope that helps.

[manguera9]

the Wall Street dropped 513 points 2 days ago ,

so how many millions of dollars is one point in the wall street?

[savingandinvesting]

@manguera9 This is not directly possible to calculate with Dow Jones Industrial Ave - the index that dropped 513 points. The DJIA is price-weighted - drop of 4.3% means that prices of 30 stocks in index weighted by price (not size/market-capitalisation) dropped 4.3%. On that day, S&P 500 (500 largest cos&market cap weight) dropped 4.8% on $11 tr. market cap -> $528bn wiped out. The Wilshire 5000: broadest index (and market cap weighted) fell 5.05%, representing: just under $700bn wiped out.

[hbloch1]

Toll Brothers Luxury Housing...........Go to Youtube...........Looking for Schmucks

[unrivaled37]

Hey thankyou! This helped me a lot. Im studying AP economics :)

[FrankDinner27]

What is stock? It's a security that's what it is

onlinestockforum(.)com

[anthonyinsc]

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[SimplyPennies]

hi guys, please explore our channel: SimplyPennies

we are the best penny stock market recap show! and we look and hunt for pump and dumps!

[ratkumchase101]

Check out duniyoDOTcom/diary

My journey to earning my fortunes in stock market.

Thanks.

[thecomicsitedotcom]

Could you give an opinion on ticker lnux? I am long, but can't figure out why the valuation is so low? Good revenue growth over the last 3 years and the directors are buying it hand over fist? Any idea?

[zohreh85]

what is common stock?

[savingandinvesting]

@zohreh85 Common stock is ordinary stock or shares in the company and that is what this video refers to. When people say stock they are referring to common stock - also known as ordinary shares sometimes. The other type of 'stock' is a preference stock but that would be very clearly identified as such and is has different characteristics - stock is otherwise common stock and a common stock is a stock. Hope that helps - best regards, Michael.

[IvMc3IronFist]

Accidental dis like, slipped when going for the like button. Good video mate.

[geekaleek]

im still confused :(

[savingandinvesting]

@geekaleek I would start with the videos in sequence - before stocks for example there is a video on providers and users of capital - there is also the book - I hope this helps - best regards, Michael.

[Corson100]

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[BIGKILI808]

hey, how do i get started with buying stocks? i have always heard about people talking about stocks but never knew how it works. can anyone help me?

[jasonextreme]

I need to clarify things.

Okay, so say I have $10000 all spent on a $2 stock.

The next day, the stock goes up and becomes $2.5 which is 25%.

How much profit did I earn?

[assphincter]

You earned 25% profit which equals $2500 for a total of $12,500. First time?

[savingandinvesting]

In your hpothetical example, if you sell the stock at $2.50 the profit will be $.5 per stock less any commissions, taxes and other costs. If you do not sell it, it is a paper profit and could obviously disappear. Picking stocks that go up 25% in a day is unfortunately not easy - in fact it is virtually impossible to do consistently (otherwise more active mutual funds would beat their benchmarks). The stock could also go down 25% on the first day or up 2% or down 5% etc.

[shihui1402]

hi , got a couple of qns grateful for your help. 1. why do bonds and interest rates have an inverse relationship, ie bonds go up int rates go down? and in today's context does this still hold true all the time? 2. pls explain how does the above relationship then relate with equity? 3. pls explain what does a stock split mean? tks again!

[TheJimfredrickson]

Has anyone tried this yet? originalturtletrader [dot] com

[PrinceMansur]

you are a goldmine thanks a lot

=)

[TheSheik154]

Pardon my (further) ignorance... after an intitial offering, do subsequent offerings dilute the value of existing stocks? And if so, isn't this unfair to existing stockholders?

[savingandinvesting]

Depends on nature of the secondary issue and what is done with proceeds. If earnings rise proportionately with higher number of shares -> no earnings dilution; if they rise more then deal is actually accretive to earnings. If they rise less then dilutive. Sometimes dilutive in Yr 1 - accretive later. If value of co does not rise proportionately, then value dilution. If the shares are just issued to mgmt at no cost, then dilution but salary and bonus also decrease earnings. Situation specific.

[TheSheik154]

Thanks again ( :

[tenchi77]

Subsequent offerings does dilute the value of existing stock holders. It's unfortunate but sometimes a company will have to do that so that they can raise the necessary cash for the business.

[TheSheik154]

Pardon my ignorance here, but what determines the number and/or value of shares that companies can issue in an initial offering?

[savingandinvesting]

First/more dif decision: co (with bankers) establish reasonable market value of the entire eq of co where feel investors will buy eq/shares based on val measures/comparables.

Nr of shares & initial share price range then effectively arbitrary - can pick a nr of shares and calculate a corr price/share. Typ marketed to investors with eq/share price range - allows investors to assess valuation, make calcs, have view.

Based on demand shares priced typ within range, sometimes outside dep. on demand.

[TheSheik154]

Thanks : )

[sodr2]

so whats the difference between a franchisee and an investor of a company?

[savingandinvesting]

Franchisee adopts philosophy of co. and typ. enters into contract to market part. co's products/services in certain region only - e.g. a Subway sandwich franchisee - can involve use of logo/way of doing business as per franchise contract.

Investor provides capital/money to entire co. typ. no operational involvement and receives return/loss based on how company develops. Investor either via ownership/equity (shareholder) or through debt (lender). See Provider and User video as well. Best regards.

[jdcremin]

What benefit does the stockholder gain? Profits are not shared with the stockholder.

The only way a stockholder makes money is when he sells his share to someone else.

You can buy a stock in a successfeul company with rising profits yet the sock can go down - you'll have "ownership" in a profitable company yet you'll be losing money?

(Assuming no dividend)

[shakaama]

i don't know if this is the place for this but...

what do you think of the vanguard 401k [i'm a total noob, please be gentle] I had no idea what i was choosing but in the pamphlet to choose which stocks to put money in they had little instructions like "long term low risk secure stock" "risky high yield stock" i went with no more than 10% in any one of the stocks in the 401k or is it a fund?

[xAVRx]

Hey man what's the name of your book and where can I get it?

[savingandinvesting]

The book is called 'Saving and Investing' and is available at Amazon and Barnes & Noble online and numerous stores though not all. The channel has link to site and Amazon site. Thank you for asking!

[ncbookz]

seems to make things very clear and simple good job

[FiggsCorp2010]

Where should i start if i wanted to buy stock online or

from someone else?

[savingandinvesting]

Thanks for subscribing and question. Can buy from online broker like TD Waterhouse, Ameritrade, Schwab and others. Would not suggest buying one stock in isolation for diversification, timing, taxes, market efficiency reasons among others. Important to get complete picture and know what they are in context of bigger picture - can read my book if you like or please consider all of these issues plus those on site very thoroughly. Hope this helps - best regards.

[hack1981]

i wanted to know do you know of any site's that i can trade with fake money to improve my skill