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In this video I explain how the stock market works. This is a concise beginners guide to the stock market. The stock market is a place where individual investors and retail traders like you and me can buy shares of oftentimes very large publicly traded companies. As fractional owners of these companies, we benefit if the stock price increases over time, and we can also be the beneficiary of dividends paid by the company.
You might ask yourself why do companies trade on the stock market and why would they want to share in the profits with investors. The reason is because when a company does it's initial public offering on the stock market they receive the proceeds from selling those shares. That allows the company to reinvest in future growth. If they are successful, the company will grow over time, however, if they are not successful, the company will decline in value.
Given the stock market is risky, you might ask yourself why anyone invests at all. The two primary reasons are the obvious potential for profit that outweighs risk, and to hedge against inflation.
#daytrading #warriortrading #rosscameron #stocks #stockmarket #learntotrade #shorts
Warrior Trading // Ross Cameron // Day Trade Warrior

This is a concise beginner's guide to the stock market. So how does the stock market work? Well, the stock market is a place where individual investors like you and I can buy fractional ownership of these huge companies like Apple or Tesla. And the reason these companies sell shares onto the open market is because the proceed from those sales goes back into the company and allows them to fund future growth. If they realize that growth, it'll be reflected as the stock price increases over time.

If they don't realize that growth, the price will go down. So why do people flock to the market instead of real estate or other investment opportunities? Well, one of the reasons is because the barrier to entry is so low. You can be investor with as little as a dollar. A hundred dollars put in the market 20 years ago would be worth 450 dollars today.

So not only are you beating inflation historically, you're also returning a profit, which is your reward for taking the risk of investing in these companies.

By Stock Chat

where the coffee is hot and so is the chat

One thought on “Stock market explained for beginners in 60 seconds – #shorts”
  1. Avataaar/Circle Created with python_avatars Larg Ank says:

    Great explaination! Love the new shorts content

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