How The Stock Exchange Works (For Dummies)

To the people that are so surprised over Ads being related to the video, it's not because of the context of the video, rather the fact that you've probably been googling and watching videos about the stock market or economies. It's called personalised Advertisement, Google and other websites use your internet search data to determine what you've been interested in recently they even can predict your gender or demographic. Have you never wondered why Ads on a site are coincidently about something you've been looking at or watching?

Give it a go, watch a bunch of guitar tutorials and then google some stuff about guitars, in a short while you'll notice you'll start getting a lot of adverts about 'guitar lessons' and 'learning classes'. Burberry’s 4oD went a step to far once and had ads which inserted viewers' initials – and this was just from login information.

All your details are out there, ready to be used for marketing.

I don't know anything about the stock market, but here's my best attempt at explaining what it is

Imagine a company as a pizza
you give money to them and you receive a ticket for a portion of the pizza
with the money you gave, the company can make a bigger pizza, then your slice will get bigger.
If your slice gets bigger, you can sell the ticket to your friend for more than you first bought it for.
However, if the pizza is getting smaller, your friend won't want to buy the ticket, because he'll get a smaller pizza slice

To this day, people still ponder over Taco Inc.'s secret second identity as Döner Inc.
(No seriously, try pausing at 2:17 before it splits up)

yes but who are the shares sold to?

OMG guys... it has 3:33 minutes...

So let's say someone buys a cheap stock, then eventually it starts growing by large amounts, who's going to buy it from them?

What a fucking annoying voice.

The real question is, ''What does this mean for me?'' as working class. Probably nothing

If a video isn't political it'll get a lot of likes on YouTube.

Simply put. Beautifully animated.

stock market stank

Today I learned Adidas is and always was a German company

mE a DuMmy

Why would someone buy a share in the company when the amount of 'company' a shareholder owns is so small they can't influence the company at all? It sounds like people only buy shares to sell them.

I'm a dummy, so this helped

Ultimately its gambling. A company sells you paper shares, you hold those hoping some other mugs are buying thus increasing the value of your paper, which you then sell at a profit, however if there is a major political move, a housing bubble collapse, interest rate rise, the collapse of a major economy then it could bring all share prices down regardless of their value. However even a major 'correction' as they like to call it occurs its likely to be only about 50% tops but not evenly spread, the bigg bad is the market slides sideways for years and years and years. A sideways slide means you have to work harder to make money in smaller periods of time. The worst aspect of share trading is when a company raises money by flooding the market with millions or billions of shares to raise funds. I've held shares in small miners who are always sticking out their hands for more money to pay the CEO and invest in 'exploring' but never making any money except out of me. Or bio tech companies with great ideas that 5 years later still don't have cash flow just research. The big boys or share trading have their fingers on the pulse by the minute and will jump out or in at the smell of news and all you other retirees out their who don't have a clue will just sit on your dividend payments till you move into a nursing homes, God bless you.

I want to buy some shares..

I would drink bubble coffee tbh

so the company makes income by selling shares... so where do the shares go when other people have bought the companies shares and sell them?

i'm a certified dummy because i still don't understand