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How The Stock Exchange Works (For Dummies)

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Why are there stocks at all? Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl! Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science. We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! :) We're a bunch of Information designers from munich, visit us on facebook or behance to say hi! https://www.facebook.com/Kurzgesagt https://www.behance.net/kurzgesagt How the Stock Exchange works Help us caption & translate this video! http://www.youtube.com/timedtext_cs_panel?c=UCsXVk37bltHxD1rDPwtNM8Q&tab=2
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Cool Name (1 day ago)
Okay father
EyedIce YT (1 hour ago)
Question: Why was there no grass but ice?
Eli Michaud (23 hours ago)
this sucks
Smarteverything (3 days ago)
Could I buy shares in kurtgeazacht
Not sure if stock exchange or devil worship 😂
Yürüyen Ansiklopedi (3 days ago)
2:17 it reads Döner Inc. for a split second
TazWalvez The burrito (4 days ago)
*I thought you were nice* S o b s v i o l e n t l y .
Death (4 days ago)
"CAPITALISM" intensifies....
HyperMangi (5 days ago)
Default Helper (8 days ago)
it's DAX
John Trevino (10 days ago)
Should've explain dividends and other benefits
Pranav Sridhar (11 days ago)
Screw you money Barter system was better
Kawser Latif (12 days ago)
Me: *understands videos about astrophysics* Also me: *dosent understand this video*
Bruno Pereira (6 days ago)
Economy is the mastermind of complex stuffs to understand.
FerdaFiv HourEnergy (13 days ago)
Explain it to me like I’m 3
M e G a B e A n (15 days ago)
Bro why is this so hard? TF DOES IT MEAN.
Wojtek The Bear (12 days ago)
In order for some companies to have money to invest, they sometimes offer a share of ownership in the company, known as stock. So if I was the sole owner of McDonald's, I might sell you 49% of the company for a set amount of money, then use the money to build more McDonald's. A stock market is just a market where a bunch of people who own parts of companies can sell their holdings to each other. I might not like the direction Apple is going, so I will offer up my ownership in the company, then use the money from selling my ownership to buy ownership in another company, like Microsoft.
Ruzindana Jean -Marie (17 days ago)
I understand but business & stock marketing and international corruptions of Belgium authority are not combination , Authority of Belgium using my emails and social Network for things are not religious or politics means what ? you mast learn how to fight those peoples are against peace and security it doesn't Matter where report come from even ethnique menolities to grows Worldwide business and stock marketing , I don't do anythings at all with Belgium why if you see suspicion you don't ask them since I was in united kingdom I was in contacts with us Sony Music and others organisation you never had this , Thank you to take action , alias BrownLonardo
Kay Kardia (20 days ago)
I'm a visual learner. So this made sense. Thank you!
IMP Leno (24 days ago)
I...I still don’t get it ;-;
Wojtek The Bear (16 days ago)
In order to raise funds, some companies will sell ownership in themselves to people. A stock market is just the investors buying and selling ownership in organizations to each other. I may not like where Target is going and so sell my ownership stake in Target and buy a stake in Amazon or Twitter instead.
AL Can (25 days ago)
Is there a video for dumb dummies?
w0ttheh3ll (25 days ago)
Döner Inc. - lol
Fuquan Tiegermann (25 days ago)
2:17 mash-up with the german version?
Anime Hivemind (26 days ago)
i liked this video, the comments were funny
Skyler B (29 days ago)
Oh my. How sparse the end credits are in this one. Wonderful to see how far you guys have come!
Quade Q (1 month ago)
In the future it might help to mention dividends, buybacks, index funds, and mutual funds, perhaps in a follow up video.
Ray Banuelos (1 month ago)
are you trying to profit from us the dummies??? if so, I guess you need the dummies
Fatjon (1 month ago)
I have made my first 60.000$ 1 month ago from stocks
The book to read on this topic for begginers is The Fundamentals of the Stock Market By B. O'Neill Wyss
Benitez Sdtrader (1 month ago)
IQD Momentum strategy is built with social at the forefront for stock exchange mostly. Fully integrated chat systems, chat forums and an excellent way to share your drawings and analysis with a single click to any group or forum. This makes for an excellent way to generate ideas or learn beside other traders with Lukasz Wilhelm. You have to try it and see it in action to understand the power of the implementation.
Adam (1 month ago)
Wow, didn't expect to stumble upon this old relic. Would love to see it remastered.
Stock Market brings together people who want to buy and sell the shares of companies. Its as simple as that.
score fresh (1 month ago)
You must me at "shares" .
Content Deleted (1 month ago)
Since the DAX is doing so well, how about *I* invest money into the DAX?
Moltenlava (1 month ago)
So how does the stock market crash? I mean like since it is influenced by companies from all over the world how can all of them crash simultaneously?
Wojtek The Bear (1 month ago)
Companies are interconnected, so what happens to one company is going to affect another. If Microsoft just announced that their profits were down, and you one of Microsoft's biggest suppliers, you can expect that Microsoft will buy less from you in the future, meaning your profits will also take a hit. Beyond that, the stock market is based on expectations and predictions. They don't always hold true. Let's go back to Microsoft. Say their stock was selling for $90 a share. They also plan on releasing a new Xbox in the coming months, and you expect the console to sell amazingly well, more than other people think it will, so you think the Microsoft stock will increase to $100 a share. A few months later they release their earnings report and it sold much less than expected, decreasing the company's valuation and, therefore, their share price also falls. Usually that's where the story will end, but what if people had high expectations for nearly all the companies on the stock market and a few key companies underperform? Not only will their shares fall, but companies they are connected to will fall as well. That means you, a shareholder, want to sell your shares of stock before the shares drop too much (you want to sell as soon as the negative news hits, not 5 minutes later when its valuation already dropped $10). This causes a race for people to sell their shares with few buyers. Lots of sellers and few buyers decreases the valuation of shares on the market even more, leading to a huge dip, or a crash. I hope I explained it well enough. Basically: people expect companies to do good, they don't, people get scared that their investments will lose value and try to get out, causing an imbalance in the market as everyone tries to sell their shares.
MariusTravell (1 month ago)
Im selling Tim Sykes Millionaire Challenge DVD Set, contact me.
Davis Moore (1 month ago)
I just got started with this Stock investing if a thing, i'd like to know the best stocks i can invest in, please i need professional help.
Davis Moore (1 month ago)
Quade Q thanks for the advise.
Quade Q (1 month ago)
Davis Moore, you could pick individual stocks, if you are unsure and do not want to risk capital, you may like Warren Buffett's advice to the average investor: consistently buy and hold an index fund through thick and thin, especially thin. Personally I put most of my money into VOO S&P500 index fund.
Davis Moore (1 month ago)
Ledger Balance you’re correct because one rich guy says it’s going to blow up doesn’t mean it is, but I’m so glad I got to buy some marijuana stocks, I’m already beginning to see little gains. It sure is gonna blow up.
Ledger Balance (1 month ago)
+Davis Moore Investing in cannabis is like playing scratchy lottos: you probably aren't going to make much doing it. And just because ONE rich guy says it's going to blow up, that doesn't it's going to blow up.
Ledger Balance (1 month ago)
+González Mariana. Cannabis stocks aren't "much less expensive than normal [whatever that means] stocks." They're a penny stock, and they exhibit all of the traits of penny stocks. Penny stocks, by the way, make up the majority of stocks on the market.
ChillyFilly Gaming (1 month ago)
This video made no sense and ended up asking my dad how this shit works
spaceinbetween (2 months ago)
What I don't get is ... So you buy a stock at $38, right? Then you wait a little bit and sell it at $50. But what stupid person would buy that stock from you at $50? No normal buyer would wait til a stock is MORE EXPENSIVE than it was before to buy it. doesnt make sense. How could you guarantee that you will always find a buyer. Bunch of retarded buyers out there, I guess lol
Wojtek The Bear (1 month ago)
You're working under the assumption that there is a ceiling to the price of a stock. That isn't true. You might think that the stock will reach a value of $60 max, but someone else might think that it will one day be worth $100+. With that in mind, they'd love to buy your share of stock for only $50.
luke france (1 month ago)
spaceinbetween the same reason to why you bought it at $38.
Ibeji Benson (2 months ago)
Ohh look you here too, so your also a dummy my friend 😂😂😂
#TeamDodoBird CPNI (2 months ago)
I translate your videos.
The King (2 months ago)
Make a video about FOREX plzzzzzz
ColinTrades (2 months ago)
Great post get that cash !
Shed (2 months ago)
i don't get it
The Truth (2 months ago)
The Q (2 months ago)
Certified dummie here
Hello There (2 months ago)
1:40 did not age well
Ryan Fehr (2 months ago)
Glorified gambling.
Shuforces (2 months ago)
Can you trade shares of say BMW on a different stock exchange from the one in Germany?
Wojtek The Bear (1 month ago)
+Subscribe to My Channel No normal person can. Any arbitrage opportunities (what you described) only exist for fractions of a second on stock markets and are quickly fixed by programs created by investing institutions to find and profit from them.
+Wojtek The Bear I think he meant, buy from one stock exchange and sell it to the other and make a profit cause of price differences.
Wojtek The Bear (2 months ago)
It's traded on several European exchanges, but the stock can't be traded on an exchange unless it's listed on it.
The Monk Way (2 months ago)
*What a perfect explanation with interesting animations. This video is an inspiration for us other investment channels haha!*
Dominic Jose (3 days ago)
+Devansh Rathore well the guy said he has no idea as to how to invest. It would be better for him if he gets a broker who gives him advice on where to invest, in exchange for a commission.
Devansh Rathore (1 month ago)
+Rudrapratap Singh why bother with brokers... Just make a demat account with a bank
Rudrapratap Singh (1 month ago)
+Jacob Corona meet a broker and break the ice.
Jacob Corona (2 months ago)
I’m 17, and know almost nothing about trading, investing or stock exchange but would it not be ideal to put money towards Israel tech, oil, and energy the best way to go? If not please tell me ty🙏🏼
Joseph Lawndale (2 months ago)
Look, just give me the For Dummies book.
TheOnlyEpsilonAlpha (2 months ago)
Still don’t get it 😞
+Wojtek The Bear you are excellent in explanations, why not create your own animations.
Wojtek The Bear (2 months ago)
In order to raise more money for investments, a company can sell someone of its ownership up to an outside buyer. So if I owned a mom and pap shop and wanted to open a second store, I can sell half of my business to you, and then use the money you'd pay for it to build the second shop. If at any point you didn't want to own part of the business anymore, you can sell it to someone else. That's all a stock market is, people buying and selling ownership in varying companies.
Adam (2 months ago)
Wojtek The Bear (2 months ago)
Peepee Train (2 months ago)
When I’m old like 70 or 80, imma invest half my money in a good company and just hope it does well in 10 years and take it out.
Alien Beam (2 months ago)
Who’s in 2019??!!
#Nerves of steel (2 months ago)
What this video actually says Teaching methods for dummies To teach a dummy, just add childish music,bright colors , food stuff,youtube and similar stuff they know with the information . they will eventually pretend they got the topic, so as to get away from emabarsssment. More of a marketing strategy than actually benefitting .
Wojtek The Bear (2 months ago)
Is it that odd to assume that making a video more interesting also makes it easier for more people to follow and understand? Apparently so.
Chris Allen (2 months ago)
So it's similar to flipping houses? You buy it at a lower price and sell it higher to the nxt person looking to flip, depending on how well that company does. Which means you would have to be heavily involved in what that company does and what ideas they're selling to customers. Sounds like drug dealing am I right?
Wojtek The Bear (2 months ago)
Your basic concept is right, but you don't have to be heavily involved in the companies involved. 99% of people aren't. It's a good idea to be informed on a company (which is why all public companies are required to make their financials public at least once a year. Even that's not needed. Most people just let an expert handle their investments. Like opening up an account at whatever bank you use. You tell them vaguely what investments you want (invest in the energy sector, the automotive sector, growing markets in Europe, etc) and they'll handle the nitty gritty. Of course working for a bank they aren't heavily involved in the companies being invested in, but they do know where to fine information on their financials and how to properly analyze them.
Escobar_ Pips (2 months ago)
If you’re looking for a trading team Send me a message
muaid mahmoud (2 months ago)
how can you do this animation give me the name of the site
Nicholas Dalton (3 months ago)
Mr Shaw Brandon has really helped me make a fortune from Stock Exchange
Olivia Charlotte (3 months ago)
Investing in stock is really a good idea
O'Shea Jeff (3 months ago)
Contact Mr Shaw Brandon Privately at: ( [email protected] . com )
Zhang Woo (3 months ago)
i have been trading on my own and i have been loosing alot lately, How can i get help from Mr Shaw Brandon because i can see good reviews about his trading expertise
Hana Aoi (3 months ago)
Mr Shaw Brandon is the best stock trader so far
Neville Oscar (3 months ago)
His strategy works always
Thank you! God bless you
DerpToni616372 (3 months ago)
What is a 'how'?
SirLaunsloth (3 months ago)
Ducks ate lost here
Jose Diaz (3 months ago)
If u watching this video u a dummy too just like me 😂😂😂😂😂😂
Asmita Punia (3 months ago)
What do long term shareholders get from investing??
Tomatoe Eater (3 months ago)
They are share holders which means that they will get the profits in the form of dividends. Also after long time their share vale may appreciate extensively and they can make a profit in terms of capital gains.
Wojtek The Bear (3 months ago)
Ownership in the company, and dividends (uninvited profits from the company give to the shareholders).
Pwned 101 (3 months ago)
This one is for all you little kids
Prince Hans (3 months ago)
Glad to see I'm not the only dummy
dan eichler (3 months ago)
good stock screener will show you everything you need to know
Hugo Wahl (3 months ago)
I think I need a pizza
SageplayzZ YT (3 months ago)
I am 11 years old and I dont understand shit.
lordoftheoreos (3 months ago)
Probably because you are 11 years old :)
Wira Kusuma (3 months ago)
if i already invested my money in some company i won't be able to take my money back right? and if the company goes bankcrupt what will happen to my money?
Tomatoe Eater (3 months ago)
You can sell your share to others, why do you want your money back.
Sharon Williams (3 months ago)
Anyone else still feels like a dummy after watching this video?
Tomatoe Eater (3 months ago)
Stocks are like ownership certificate, you give a company money and become part owners.
Michelle Zhou (3 months ago)
I’m reading about the Great Depression in history and I’m watching this because I don’t understand how the stock market works
Tomatoe Eater (3 months ago)
This is a poor explanation. How much did you understood ?
Digital Asset Speculator (3 months ago)
Great video 💯🔥
Lukas Kennedy (3 months ago)
This was pretty helpful. Thanks
nalan david (3 months ago)
hi iam alan , ican twach sharemarket in english and tamil language through phone and teamviewerapp and whatsapp 9940355610
This is a nice brief explanation of how exchanges work, it is worth learning, I have made a good amount of money trading stocks and even talk about it in some of my videos on my channel.
Funny Business (3 months ago)
Zachary Laid Finding Freedom i seeeen you
Kirsten Marie (3 months ago)
So investing in a company gives the company free money thus enabling them to grow bigger and bigger. Are we sure that investing in large corporations is the best way to utilize the power we have? Aren't we essentially giving our money over to the very people who seek to keep the majority enslaved and less powerful than them?
BlackWorldTraveler (3 months ago)
Kirsten Marie You need to read books on this. My nieces and nephews are ages 14-24 years old. All of them contributing to Roth IRA and understand more than you about investing.
Lara Kowalska (3 months ago)
Kirsten Marie look up Zachary Laid Stock Market Investing. He explains it good
Apple Fan Channel (3 months ago)
I watched this video 3 times and I still don’t get it
Tomatoe Eater (3 months ago)
It is confusion for new comers.
Ae Qa (3 months ago)
中文翻譯怪怪的 XD
ruanfernando (3 months ago)
It's a casino for the rich
Sayom Shakib (4 months ago)
Maybe It's the worst video of this channel. Totally disappointed.
_____ (4 months ago)
What is ‘speculative bubble with nothing more than hot air’ referring to, like what does it mean in relation to stocks?
_____ (3 months ago)
Keyboard ohhh thankyou
Robin Duong Music (4 months ago)
For the first time, I feel like I understand what's going on in a Kurzegesagt video But I'd also say a) Day trading is difficult, and while some stockholders do feel the need to buy and sell quickly when a stock price rises or falls, the general advice for normals like you and me is to buy... and to hold that share for a longer period of time. b) Stocks can also "lose" value per stock if you have a stock split, in which, say, 1 stock is divided into 2. This doesn't affect current shareholders, as now, instead of having 1 stock worth $10, they now have 2 stocks worth $5 each, which is still equal to $10, but it opens up opportunities to buy and sell.
Vervito united (4 months ago)
lol i guess i'm a dummy
Cedwick O'Brien (4 months ago)
mr benjamin mining pattern are Superior .
Tomatoe Eater (3 months ago)
Scam alert
Harry Gallow (4 months ago)
benjamin woods is the way forward .
Becky Milton (4 months ago)
i never beveled i could make such profit in trading with Mr benjamin woods i got millions on my mind. i love you Mr benjamin woods .
Mariah Clery (4 months ago)
+Park sun joo yes that is his direct email .
Jessica witherford (4 months ago)
Mr benjamin is a trusted i thank him for the payout he has been helping me in trading. i have been earning good thanks to Mr woods .
LockpowerGaming (4 months ago)
Please don't tell me I have to physically be at Wall Street to invest in stocks. Is there an app?
ARhannah (4 months ago)
I still dont get it... what's a share?
Wojtek The Bear (3 months ago)
A share is just a division of ownership in a company. When a company goes public (decides to sell ownership of itself to the public) they decide how much of the company they are offering up, and the how many pieces they want the ownership to be in. So a share of stock just means you have part ownership of a company. The actual percentage varies across companies.
bonniedog (4 months ago)
Say wallmart want to expand so they sell their shares on the stock market .. You then buy 2 shares at $50 each. Wallmart have then made $100 profit and you own 2 shares in the company (so own a very small percentage of wallmart) Wallmart then use this $100 to expand their business. Once they have expanded you sell the shares back to them or to a radom Joe Bloggs for $100 a share... Doubling your money. But it depends if Joe Bloggs wants to buy.. If he thinks wallmart will go bankrupt the flowing week he won't buy and your $100 shares are worthless as no one will want to buy them. If Joe Bloggs thinks wallmart will continue to expand he will buy your shares in the hope they go up in price Am I right?
Subscribe to My Channel (4 months ago)
you are right, share means part ownership of the company, if a company has total 100 shares and you own 2 shares of that company then you are 2% owner.
동동동 (4 months ago)
In a nutshell did it again! Another confusing, mediocre video with flashy colors!
PornHubChairman (3 months ago)
It's pretty straight forward. This is something you would read in a video format if you were going to learn the basics of the stock market. What seemed confusing to you?
sros6 (4 months ago)
Proctor and Gamble shares just tanked
Christian Wood (4 months ago)
Okay so how do I go to own more shares without investing more??? Let’s say I want to take control of the company. I’m so lost small business sounds easier
Gratka 2000 (3 months ago)
Yes you can but only if someone give it to you or company give you more shares when you are good worker or manager
Aiham Abd (4 months ago)
I feel less stupid by watching this..
Jwan Suly (4 months ago)
2:17 hahahahahaha when the taco slide goes away the editor changes the name of the company "Taco" to "Döner". I think the editor is not a fan of Döner
Yanky (4 months ago)
Torch (4 months ago)
Comments more helpful then the video ;)
Vojtěch Mareš (4 months ago)
To není prodělek, to je strategie :D
Juvenal Ballista (4 months ago)
No birds no like
Jalen Young (4 months ago)
Who the hell u calling a dummy
Banderas Vaduva (4 months ago)
Stock Exchange: *It will make you rich as fast as it will make you broke.*
K O (4 months ago)
Thank you for this information. Very useful.

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