What and How The Stock Market Works

No description available.

Category:

News & Politics

Tags:

• Intro
• Stock
• Market

[anthony192411]

i understand that when a company is doing well the demand for that stock goes up, so the price goes up. But why does the demand go up? What benefit do the shareholders get by owning shares of stock in a company that's doing well if that company is not giving dividends? If the shareholders aren't actually getting the company's profits (which are what dividends are right?) , then what makes buying shares of stock in a company that's doing well so attractive?

[pmitchellceo]

@anthony192411 That is not a simple answer. Growth companies rarely pay dividends when they are growing. Instead they reinvest that money in an effort to make more money. If that company continues to grow, the value of the shares continue to grow as well. Many people have become millionaires by buying tech companies that went up in value with no dividends paid. Of course, many people have lost everything by investing in companies they thought were going to go up, but didn't.

[lamiche19]

Thank you so much for this video! You put the words and lingo in our terms and made it super easy to understand. I am studying right now to get my Series 7 and could use all the help I can get:)

[pmitchellceo]

@lamiche19 Gotta love that series 7 test. One of the single hardest tests you will ever take. But not to worry, others have passed it and so can you!

[ritchie19no2]

hey pete thankyou very much, my ambition for when im older is to become a stock broker so i want to know as much about the market as i can.

But how can you tell when a company is about to do bad/the stock price will fall.

And is there anywhere on the internet i can get stocks

[pmitchellceo]

@ritchie19no2 That is the question that if solved will make you very wealthy. You can't know for sure. That is why it is very important to invest in companies that you know and have a solid reason for doing so. Also, you need to have an exit strategy in place. Know when you will sell or why you will exit the market before you buy.

[DazReht]

hehe.....he said, "My type of firm".

[shteezy1212]

@pmitchellceo Lol then make a "professional" video. Because CLEARLY im not going to pay money to a doctor so he can "advise" me where I can find better health. Im not paying my mechanic so he can "advise" me where I can fix my car. Same goes for CPA! Oh! and by the way...PS3 is better ;)

[pmitchellceo]

@shteezy1212 So by your reasoning mechanics should only fix their own cars, Doctors should only heal themselves and CPAs should only do their own taxes. lol! Go back to your xbox and leave the investing to us pros.

[gossfunkel]

@SurfingGuitar2481 same here bro

[VolcomStoner94]

@GJ3200 u mad bro?

[GJ3200]

companies like this fat slob has is the down fall of the usa. you don't produce anything! Just suck money out of people.

[SurfingGuitar2481]

great video.

i'm only 16 and a future in the stock market is where i want to be and i suppose that atleast help me understand the brief outline of what happens.