Trading 101: How Does the Stock Market Work?

Trading 101: How Does the Stock Market Work?

Thanks to a subscriber on YouTube, I was given the suggestion to dig deep into "how" exactly the stock market works. Who is in the market? Why do people trade? How is money actually made?

[BasharA]

I'm learning so much from these basic introductory videos and your replies to questions in the comments, I definitely subscribed. I have a health issue which prevents me from having physically demanding jobs and I think trading in stock market will save my life. It's that serious so thank you so much!

[guaty]

When you watch a 12 minute video and learn more useful information than you learn in 12 years of school

[jacobdavid]

Great introductory video! It all started with early live market trading - selling cattle, corn, vegetables and the like. Buyers and sellers used to meet at the town square and haggle (bargain) prices and deals would take place. Then with industrialization, companies needed to raise money. So they devised a plan to go to the public and sell parts of their company for a dollar amount (not material parts, parts of ownership). This they called "a share" So 1 share is a representation of ownership in a company. For example Facebook, (FB) their initial offering was about $38/- a share when it started trading in May 2012. Then in August 2012, Facebook's share dipped to $19.69. Today March 17, 2017 the single share value is $139.99 Suppose a lady, let's say her name is Helen, aged 62, purchased 100 shares on May 2012 at the Initial Public Offering (IPO) that would have cost her $3800/- She wanted to save for her retirement and thought Facebook would be a good company to invest in by holding on to that stock and see the company's value rise. Today let's say she is 67 years old and wants to sell her stock of 100 shares of FB @ $139.99 per share. Someone (a buyer) unseen through any brokerage will buy it because FB shares are still in demand. (*If FB did not do so well, then there won't be any buyers, so that's the risk you run into trading stocks. The share has to be in demand at the current point of time you decide you want to sell and are looking for a buyer). So she sells it. $139.99 x 100 shares = $13, 999/- Her profit: $13, 999 - $3, 800 = $10, 199. No bank will give you this sort of return in just 5 years. Not in your wildest dreams. That is why people clamor after stocks/ shares of good performing companies. Of course, all earnings are subject to Capital Gains tax - Gains you make on selling a stock. (a collection of shares of a single company).

[Bruh-tvip]

I'm watching this instead of studying for my exams tomorrow 😂😂

[navneetxalxonx]

For the first time in my life i got to know how the stock market works.
Thanx Clay!

[trenttatro]

Thank you, this is by far the most helpful, in-depth video I have found explaining the stock market. I am looking to get into the stock market but had limited understanding of how people make money in the stock market. Thank you!

[zakariaboutraba]

This video was posted back in 2016, 4 years later it is still one of the most informative videos on Youtube to ever exist ! Thank you sir .

[mattreact]

This is actually the very first video that I stumbled upon that clearly explains what the stock market is. Thank you fam.

[AngellyTrukken]

From this video, and the previous one, I have learned more from you, than from my trading class! You're very informative while keeping it simple.

[JayChosen]

Clay bro that was so well explained... stay doing good and god bless man

[qyntifex]

These videos are great! Thanks so much for the help - just what I was looking for.

[adamlaplante]

I'm only 13 but I just realized that a video game trading system is exactly like a stock market... thanks so much for making this video!

[sujitkodakalla]

i was inspired to become a beginner .thx

[angelsepulveda]

You, my friend have got my subscription and i hope to learn a lot from you. Thank you for simplifying these 2 videos and paying attention to the comment section!

[cabdiqanifidhike]

" Thank you" is not enough to say according to how this guy explains the lesson but that is all what I can ! Thank you so much😊

[TheArtistRhythm]

These trading 101 videos are great! Very good teacher. Thank you!

[kyawsithu]

You just got yourself a new subscriber :DD

[tatortoty]

I am so glad that person asked that question. I've been searching for these answers for weeks, and I agree, many videos I've watched seem to breeze over these seemingly obvious answers. They have just not been obvious to me.

[vlupita]

Omg! Omg! Thank you for this. I am really new and felt left out and yes it is common sense but you made it better to understand thank you!

[XCislifegorun]

this was such a great video! it explained so much! thank you!