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Stocks

2023-04-03 00:00:00 / episode: 77

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Script

Stock stocks.

What are they? A lot of people have different kinds of images about stock to begin with.

Let's be clear we're talking about stock that you buy and sell on the stock market.

What is it? Well, it's a piece of a company.

Suppose you want to build a company and you don't have enough money.

Well, you could borrow money or you could ask people to invest money in your company.

It's a little different if you borrow money, they don't have any part of your company and at the end, you have to give the money back to them.

If people invest in your company, then you don't have to give the money back, but they own part of your company.

Now, how much they own? It depends on how you decide to cut or distribute the stocks.

So you might say I own 50%, you own 50%.

Maybe your stock only.

Your company only has two stocks at any rate.

That's what's happening on the stock market.

Many people can put their money into one company and they can own a piece of that company.

That means that they get a piece of the profit from the company.

So in a sense, the stock market is by definition, profit driven.

The only reason people would buy your stock is to get a profit.

Now, there's a couple ways to make money off of these stocks.

One way is to buy the stock and then just hold it.

And when the company makes profits, take your share, that's the long term way.

And you don't get a lot of money fast.

The other way is to buy the stock and then hope that the price of the stock goes up.

And if the price of the stock goes up and you sell it, you profit, that's the speculator's way that can give you a much greater increase in your profit.

But it can also give you a great decrease.

You can lose, lose a lot of money that way.

So it's risky.

Ok.

Either way, buying stock holds a little bit of risk.

But then what doesn't have risk in this world? Thanks for listening as I talked about Stocks