The Stock Market Simply Explained - Investing 101

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What Is The Stock Market- But the stock market isn’t necessarily a physical place you go to buy and sell stocks. Yes, there are physical locations around the world where people buy and sell stocks, but for average people like us, we’re doing this through the internet because it’s so much easier to do. All the stock market is is where shares of stock are bought and sold between people, on a regular basis. You’re not really investing “in” the stock market, you invest “through” the stock market.

What Are Stocks- What you buy through the stock market is different investments...sometimes referred to as “equities”. An equity is basically just the ownership of something. In this case, the equity we’re talking about specifically are stocks. A stock is just a piece of ownership in a publicly-traded company. We’re going to use Apple as our stock example for this whole video because it’s probably the easiest for everyone to understand since we’re all aware of most products and services they sell.

How To Buy And Sell Stocks- To be able to make trades on the stock market you’re going to need some assistance from a middle man to help you with the transaction of buying, selling, and keeping track of stocks you currently own. These middle people are commonly known as investment brokers, online brokers, or brokerage firms.

You Can’t Buy And Sell Stock For Any Price- But you can’t just buy and sell a stock for whatever price you want to because it’s all based on the current price per share. Whenever the stock market is open this price is constantly fluctuating up and down and changes by the second. More about why it changes in a minute. There has to be someone on the other end who is willing to buy or sell shares for a price you both agree to.

What Makes The Price Go Up And Down- When it comes down to it, the ultimate answer to that question is that at the basic fundamental level, it’s based on supply and demand in regards to the number of shares available for a particular stock. When more people are trying to sell their shares of Apple then that means there’s more supply out there and less demand...which will lower the price per share of the stock. When fewer people are trying to sell their shares of Apple, but demand increases because more people want to purchase the stock, that price per share will increase.

What Changes Supply And Demand- Now that you understand the supply and demand side of things, there are things that could happen that would make people want to buy and sell more or less shares of Apple stock which would mess with supply and demand. This is going to play into why you see the stock price increase or decrease every second when the stock market is open.

Good and Bad news- The first thing that will change the direction of a stock price is good and bad news. When Apple announces the release of a new breakthrough product like the Apple Car and investors view that as a way for the company to make more money then we’ll usually see an increase in the stock price. That’s because investors would start to purchase more stock due to the good news and high expectations. On the other hand, if later down the line that Apple Car turns out to have a bunch of issues and consumers stop buying them then that could eat into the profits investors were expecting which would make some investors want to start selling their share of stock.

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Disclaimer: This video is for educational purposes only. Please take all of my suggestions/recommendations and do your own research before making any decisions with your money. Contact a professional before trying anything that I talk about. I know you're smart and you'll use that big brain of yours :)

#stockmarket #investing #howtoinvest

Видео The Stock Market Simply Explained - Investing 101 канала Jarrad Morrow