How does the stock market work? In this video, You will learn the stock market basics and how to make money on the stock market. This video is for stock market beginners who want to get started in stock investing and learn how investing in stocks works.

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TIMESTAMPS

00:00 What you will learn in this video
In this video, we will cover how stock investing works and the stock market basics you need to know.

00:35 How does investing in stocks work?
When you buy shares of a company you become a part owner of that company. And this is how you make money in stocks.

01:00 Stock Shares explained
Stock is equal to all of the shares that the ownership of the company has been divided up into. Stock shares are more than pieces of paper or numbers on a screen. They represent ownership. If you own shares of a company you own a part of that business.

02:14 What happens when you buy shares of stock
When you buy shares you're just buying them from someone else that owns them. It's not you giving money to the company.

02:49 Shares Outstanding and Market Cap explained
You can consider the market cap to be the price tag on the entire company. Theoretically if you purchased 100% of the shares outstanding, you would own 100% of the company.

03:45 How does investing in stocks work?
Investing means putting out money now to get more money back later. If you pay too much than you will fail in these efforts. The successful investors goal should be to accumulate shares of good business and pay good prices for those shares.

04:59 Stock Market Efficiency and Stock Bubbles
Here's the big secret... The stock market is not efficient. It's mostly efficient but the difference between mostly and perfectly efficient is how you make money on the stock market.

06:15 Finding undervalued stocks
Price is what you pay and value is what you get. Finding undervalued stocks is the name of the game for stock investing.

07:04 Stock Investors Vs. Stock Traders (Speculators)
Most people think they are investing when really they're just speculating and are treating it like the casino. The difference is whether you're focusing on the asset or the price of the asset.

07:39 The Next Step: Calculating Intrinsic Value of a Stock
Stock investors need to start by calculating the intrinsic value of a stock and then looking a the price. If you're just looking at the price you're doing it wrong.



Special thanks to my incredibly beautiful, smart, and creative girlfriend, Stephanie, for her editing wizardry and creative insights and ideas.

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