How a Company Benefits from the Stock Market

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  • čas přidán 23. 05. 2018
  • Trading 101: How a Company Benefits from the Stock Market
    This is a bit of a more advanced topic, so make sure you first know what the stock market is and how it works before proceeding with this video. Assuming you have that foundation, then let’s get a bit more in-depth about the stock market; in particularly, how a company benefits after the initial sale of shares.
    If you’re not sure what the stock market even is, CLICK HERE (claytrader.com/blogs/trading-..., for many introductory videos.
    Enjoy this Free Content? I'm confident you'd enjoy my premium training courses then: claytrader.com/training/
    Hear real-life trading journeys from "normal" people: The Stock Trading Reality Podcast - claytrader.com/podcast/

Komentáře • 317

  • @rosariolaspina9639
    @rosariolaspina9639 Před 3 lety +50

    Finally someone who really understands the stock market to answer such a simple question!!

  • @deepshulpradeep2549
    @deepshulpradeep2549 Před 3 lety +32

    Wow, this cleared up so much confusion. Well explained!

  • @johnconnor9787
    @johnconnor9787 Před 4 lety +10

    I always thought about this question and you helped to clarify this a lot. Thank you

  • @christopherf.8201
    @christopherf.8201 Před 5 lety +15

    Thank you! You explained this perfectly for me to understand the concept. I've been wondering this question for a while now. I am new to the stock market and been learning loads to better understand the market.

    • @claytrader
      @claytrader  Před 5 lety +1

      Glad it could help!

    • @alewa808
      @alewa808 Před 4 lety

      But the share are own by people? So if shares go up, the company doesn't have more money?

    • @alewa808
      @alewa808 Před 4 lety

      But u said the people own the shares

    • @alewa808
      @alewa808 Před 4 lety

      So the shares that the people own doesnt benefit the company

    • @sanyocolaco2963
      @sanyocolaco2963 Před 2 lety

      Future billionaires we got secret

  • @HyderabadiHustler
    @HyderabadiHustler Před 4 lety +2

    Thank you! You made me much about why " BRANDING, ONLINE REPUTATION MANAGEMENT & MARKETING" of the performance of the company for the company valuation.

  • @ShantanuSaxena666
    @ShantanuSaxena666 Před 3 lety +4

    This video helped me a lot in clearing out some confusions. Thank you!

  • @jasonoppong4874
    @jasonoppong4874 Před 3 lety +4

    Great video two questions:@Claytrader
    1.So an IPO a company won’t give all it’s shares- and what determines price of 1 unit of IPO share
    2. When the company decides to sell rest of their shares or use remaining shares to buy company I’m assuming this then subsequently decreases stock price

    • @claytrader
      @claytrader  Před 3 lety +1

      1) supply vs demand 2) it can, but not always

  • @carlosmonte9597
    @carlosmonte9597 Před 6 lety +4

    Also encourages loayalty using stock and option compensation in high positions with long lockup periods

  • @mustaphabelabed4008
    @mustaphabelabed4008 Před 6 lety +4

    I appreciate your lessons thank you !

  • @AlejandroVargas-mh5bt
    @AlejandroVargas-mh5bt Před 4 lety +4

    The intrinsic value doesn’t change, so I believe you are talking about price not value. Since to value a company you need to take into consideration the future cash flows but very good explanation.

  • @sandmann6851
    @sandmann6851 Před 3 lety +3

    Exactly what I was looking for. Thank you!

  • @kashishhgoel
    @kashishhgoel Před 3 lety +2

    Amazing Video!! This is just the thing I was looking for. Thank you.

  • @lisaj205
    @lisaj205 Před 6 lety +18

    Very clear and concise thank you!

  • @SteffiTunaPie
    @SteffiTunaPie Před 3 lety

    Thank you. May you prosper in this endeavor. Excellent explanation.

  • @nikthough3110
    @nikthough3110 Před 4 lety +1

    Thanks for the enlightenment bro...

  • @dsolis7532
    @dsolis7532 Před 3 lety +1

    When a company issues their balance sheet the section of “Cash and cash equivalents” also lists the shares they own of them self and other companies? Because if that’s the case many companies hold less cash than what they actually have. Is there a way of knowing how much in that section is shares or dollar?

  • @johnmanandhar2626
    @johnmanandhar2626 Před 4 lety +2

    I have a question
    How does the performance of the company affect the price of the stock?
    For eg we say that if the company is not doing well than if the price of the share of that company is high we consider it overvalued.. But why?
    How can the performance of the company affect the price of the share?

    • @claytrader
      @claytrader  Před 4 lety +1

      Hi John, this playlist should help claytrader.com/video/trading-101/

    • @jimhandler1129
      @jimhandler1129 Před 3 lety +1

      This always confused me. After the IPO, it is just buyers and sellers of the stock. More buyers increase the price. More sellers decrease the price. Why does it really matter how well the company is conducting it's actual business, if in all actuality, supply and demand of the stock is based only on what the buyers and sellers do?

  • @fabio9910
    @fabio9910 Před 3 lety

    Perhaps the most important question around stocks which most people don't know the answer of. Well done 👏

  • @misrin1
    @misrin1 Před rokem +1

    Hi Clay,
    Thank you for your videos, I appreciate you making things simple and easy to understand.
    Something is not adding up to me regarding how a company can determine the number of shares and at what price when they first go public. Also, is there a limit on how many stocks they can issue? Does issuing more stock dilutes the value of existing stocks like printing money causes inflation, releasing more stocks may cause the price to go down??
    Can you shed some light on this?? Thank you

    • @claytrader
      @claytrader  Před rokem

      I'll see what I can do for a future video.

  • @ajrjsw1
    @ajrjsw1 Před 3 lety

    Hi, great explanation regarding Flexibility of company basing on positive side when value is up. But would have been great if you would also explain what happened when value of share is going down. (Just a suggestion). Great effect.

    • @claytrader
      @claytrader  Před 3 lety

      I do that here: claytrader.com/videos/stock-make-money/

  • @chadnathe5841
    @chadnathe5841 Před 6 lety

    How would a company liquidate or sell their shares in order to acquire another company? I understand the whole underlying value of their shares thing but do the owners of the company give up more of there position? Or do they buy back some of their shares initially handed out?

    • @claytrader
      @claytrader  Před 6 lety

      They can do any number of those things. The core idea though is the more shares are worth, the more flexibility a company has.

  • @mukeshkeshri1250
    @mukeshkeshri1250 Před 3 lety

    Very helpful knowledge.....thank you sir.....

  • @sLiLHaMyTSubscribe
    @sLiLHaMyTSubscribe Před 3 lety +1

    Nice teaching thanks

  • @fdggfgdfgd251
    @fdggfgdfgd251 Před 6 lety +10

    Ok question 1. What is the stock market ? And why does the government exist?

    • @claytrader
      @claytrader  Před 6 lety +2

      This should help claytrader.com/blogs/trading-101/

  • @ShockwavesFTW
    @ShockwavesFTW Před 3 lety +1

    Great video, very concise. Couple questions if you (or anyone else) wouldn't mind answering:
    * Can a company issue 100% of it's shares? And does that actually happen/have any benefit to it?
    * Lets say company ABC releases 100K shares in their IPO. Can that company release more shares? Or do those original shares just get split and the price gets diluted? That part always confused me.

  • @vijaykumarchoudhary9209

    Straight forward answer

  • @boblikeschickennuggets661

    awesome. please keep the videos of real understanding about what stock investing is coming!

  • @Toxcpt
    @Toxcpt Před 2 lety +1

    Amazing explanation

  • @PRADEEPSINGH-de3kd
    @PRADEEPSINGH-de3kd Před 4 lety

    Excellent explained

  • @ranjancom2000
    @ranjancom2000 Před 3 lety

    Pls Make a video.. Will companies can get the fund raised again after the IPO also like a stock split.

    • @claytrader
      @claytrader  Před 3 lety

      Yes. They can sell more shares whenever they want.

  • @kamikazz7
    @kamikazz7 Před 3 lety

    correct me if i am mistaken but one thing u have missed, say on the initial offering the owners offered 20% of the company at 20$/share
    after 2 year once the shares reach 45$ the company owners can offer another percentage say 10% for the public and therefore making money by "selling" 10% of their company

    • @claytrader
      @claytrader  Před 3 lety

      Why do I feel like I'm doing a homework question for you?

  • @skyevandiver6231
    @skyevandiver6231 Před 3 lety

    Completely new to the stock market. Which of your videos do you recommend for greater understanding?

  • @justaboutanything8506
    @justaboutanything8506 Před 5 lety +1

    Question please: now if company ABC used its stock to buy XYZ will ABC's stock price fall?

    • @claytrader
      @claytrader  Před 5 lety

      I don't understand the question.

    • @sourabh5398
      @sourabh5398 Před 4 lety +1

      Brother it depend on the promoter of the company to launch share in the market.
      Just suppose three person involved to start the company and they have 10cr in there hand but they need 50 cr to run the company. So what they will do is they will take loans from the Company for ex- 35 cr. So the total amount they have now is 45cr. They still need 5cr. This 5cr they need are given by public in the market. What they do is they just share the amount of 10% of there share in defined amount. Just suppose they divide it into 10 share. Worth share hold 50lacs. And it increases as the company grow in the market. Holding that 1% share doesn't mean you own the company. Those three promoters owns that

  • @jrossjr11
    @jrossjr11 Před 3 lety

    Thank you

  • @weoutnyc7530
    @weoutnyc7530 Před 3 lety

    Great explanation !

  • @Josue.ab7
    @Josue.ab7 Před 3 lety

    How is the price affected if once the company is on the stock market and already offered the first wave of stocks, decides to sell new stocks, a second wave? Like TSLA or NEE. will the price go down due to more stocks available? Or will go up due to expectations?

    • @claytrader
      @claytrader  Před 3 lety +1

      It's all based on perception/expectations...

  • @mayankchoudhary3649
    @mayankchoudhary3649 Před 3 lety

    Thanks mate!

  • @juanpablosanchezaveleyra6454

    wow, exactly the question i had. Great answer!!

  • @jusgaming99
    @jusgaming99 Před 4 lety +1

    What do traders add to the economy?

    • @claytrader
      @claytrader  Před 4 lety

      Watch this claytrader.com/videos/day-traders-make-society-better-heres-how-stock-trading-101/

  • @saumyapatel6935
    @saumyapatel6935 Před 3 lety

    Could you please make a video on P/E ratio.

  • @Dayanandareddy-yt8pp
    @Dayanandareddy-yt8pp Před 4 lety

    when the company is listed in secondary market after it is listed in ipo?

  • @yugeshshrestha393
    @yugeshshrestha393 Před 2 lety

    thank u sir!!!

  • @number1Schumacherfan
    @number1Schumacherfan Před 4 lety

    I think the key point you maybe didn’t mention was how much equity is retained by the firm. I.e. what percentage float? Only then does the company have incentive for share prices to increase and then lever a merger or acquisition with.

    • @claytrader
      @claytrader  Před 4 lety

      Thanks for the thoughts

    • @raphaelnkwabi9676
      @raphaelnkwabi9676 Před 3 lety

      Yes the man explained well but wasn’t to the point of question. What I actually thought to hear si how the company benefits from the trade of shares among shareholders apart from reputation how can it generate money from already issued shares. Is there commision paid to the company? Help to knw how do they benefits

  • @alfredaidoo4081
    @alfredaidoo4081 Před 6 lety

    Then what about Bonds? That's it trade like stocks? Does it still has price fluctuations as stocks? Please explain

    • @claytrader
      @claytrader  Před 6 lety +1

      Good idea. I'll see what I can do.

  • @Matin-ct1ym
    @Matin-ct1ym Před 3 lety

    I have two questions
    1: who increases and decrease share prices?
    2: what happen when investors sell shares of a company in order to make profit, like gamestop company which hedge funds were trying to decrease thier share price?

    • @claytrader
      @claytrader  Před 3 lety

      This should help: claytrader.com/videos/trading-101-what-makes-a-stock-price-change/

  • @rexnadar5627
    @rexnadar5627 Před 2 lety

    Hi friend, i have one doubt with Stock Market. How the listed companies spend their profits? And there is any use with the profits to the share holders?

    • @claytrader
      @claytrader  Před 2 lety +1

      They spend them however they want.

  • @danteisenberg1387
    @danteisenberg1387 Před 3 lety

    love the vid, great example

  • @deanlegomina2011
    @deanlegomina2011 Před 3 lety

    So, the main point regarding that question would be that companies don't sell all their stocks at IPO but can sell the rest later to gain more capital or can issue more stocks to get additional capital, right?

  • @johnconnor9787
    @johnconnor9787 Před 4 lety +1

    When the company issues its stocks for the first time - do all of this stocks represent the value of 100% of a company?
    So, as I understand, in the future the company can issue endless number of stocks, but that means that each of the stock guarantees lower percentage of the ownership. Am I correct?

    • @claytrader
      @claytrader  Před 4 lety +1

      Correct.

    • @V7B817
      @V7B817 Před 4 lety +1

      @@claytrader can a company sell its stocks greater than it's face value.

    • @claytrader
      @claytrader  Před 4 lety +1

      @@V7B817 if someone is willing to pay that price, sure.

    • @bonilla1240
      @bonilla1240 Před 4 lety

      @@claytrader So a company can just continue to issue new stock, whenever they want, to raise more money? Wouldn't that upset initial stock holders because their shares are worth a little less each time this happens?

    • @claytrader
      @claytrader  Před 4 lety +1

      @@bonilla1240 yes, it would upset them and potentially cause the stock price to fall

  • @samirkumarmajhi8314
    @samirkumarmajhi8314 Před 3 lety

    I have a little confusion here, after the company issue shares the shares gonna be with the investors (retail & institutional and the promoters) and if the company is going for an acquisition the company has to first buy back those shares right? Then how are they getting benefit?

  • @alanfate4853
    @alanfate4853 Před 3 lety

    Do the shares of stock increase each year? If the company already sold all of their stocks, how do they use their stock to buy or pay employee.

  • @faizanahamed9110
    @faizanahamed9110 Před 3 lety

    I looking for answer on quora "If I invest in a company by buying shares from someone else, how is the company getting money from it?" This is question
    But you explained it very clearly as compared to quora.
    thank you

  • @Ramesh140789
    @Ramesh140789 Před 4 lety +1

    How many new shares a company can create is thr any limt. If thr is no limits then google can create more share and buy entire industry right?

  • @chiragmishra570
    @chiragmishra570 Před 4 lety

    i have one doubt, when counting the total wealth of a person ,why we count up the money that people invested in that company through stocks? please help

    • @claytrader
      @claytrader  Před 4 lety

      Because that is part of their wealth.

  • @JamezBnd007
    @JamezBnd007 Před 3 lety

    perfect video!

  • @wpelfeta
    @wpelfeta Před rokem

    The way I like to think about it is that the company can always issue more shares to raise capital and the only thing they have to pay for is the dividends, (which they also control how much dividends to pay out). So it's basically a way to get a cheap and safe "loan". They can even use the raised capital from share issuance to pay down high interest rate loans.
    The downside is that doing this risks diluting investor's shares. Technically, issuing shares doesn't lower the value of a share, since while there are more shares in the wild, the company also gained cash in its account which balances it out. The question would be whether that capital will make a return on investment. If it does not, then investors will get angry, since the company diluted the shares and had nothing to show for it.
    But in general, being a valuable is good for a company's finances.

  • @Slap_it_in
    @Slap_it_in Před 3 lety

    Does XYZ shares go down if being taken over?

  • @prathameshsakate8276
    @prathameshsakate8276 Před 4 lety

    cool,Shares can act as a means of transaction without cash similar to barter system

  • @raphaelnkwabi9676
    @raphaelnkwabi9676 Před 3 lety

    Hello I would like to ask. In case a company has already issued shares and trading for more than 10 years now exhange of shares does have any financial effect ? (Meant, does the company loose or benefits any cash so as can mobilize more exchange of shares
    2. What are the strategies adopted by organization to raise their share values
    3. What are popular system used to monitor shareholders records and the value.
    4. What are the basic features, system, data base and strategy commonly used under investors relation department with organization
    5. What is the best system and style to prepare investors relation report and then report to the CEO for easy assessment what do key requirements required by CEO to determine whether the investors relation is doing well

    • @claytrader
      @claytrader  Před 3 lety +2

      Why do I get the sense I am answering homework questions for you?

    • @johnjames6717
      @johnjames6717 Před 3 lety

      @@claytrader haha. Good catch. This guy is trying to be slick.

    • @claytrader
      @claytrader  Před 3 lety

      @@johnjames6717 yeah, some people think they are way slicker than they actually are lol

  • @Leonbartolome
    @Leonbartolome Před 3 lety

    Good video. You missed the pop ups at minute 8

  • @a.koirala3234
    @a.koirala3234 Před 3 lety

    So how does traders benefits from company? Rather than dividends. Do sales increased effect directly on stock.

    • @claytrader
      @claytrader  Před 3 lety

      This should help claytrader.com/videos/stock-make-money/

  • @troyflestado8448
    @troyflestado8448 Před 3 lety

    How to know the intrinsic value of one share?

  • @christiancarson2105
    @christiancarson2105 Před rokem

    But once a company uses their shares to buy another company what happens? Do the shares decrease in value? Do people lose money? Do people just get reset to the amount they bought the share at originally?

    • @claytrader
      @claytrader  Před rokem

      No. If people like how the company is behaving, more will buy and shares go higher.

  • @papacaillou4809
    @papacaillou4809 Před 3 lety

    I bought an Amazon company stock and jt says it pending I bought it only July 2 9:30 but idk what happening can u help? Or explain

  • @dase1001
    @dase1001 Před 3 lety

    I have a question on the example you made with ABC buying a company. ABC nedds to liquidate shares by selling them, basically selling x % Ownership of the business in order to buy the company they wish to obtain. My question is how companies can expand like this without ultimatly loosing a majority of shares IE controll of the company. Eventually the free market would own the company since ABC is not a majority shareholder in its own company.
    Is the answer that ABC hopes to get more income from the new obtained company to be able to buyback/reinvest in ABC even tho they might be valued higher?

  • @ARXCREATIONS
    @ARXCREATIONS Před 3 lety

    So the conclusion is stocks only determine the value of the company.
    And these 2 types of market does only these things.
    1. IPO - To raise capital for operations of the company.
    2. Secondary market - To determine the value of the company.
    Am I right?

  • @natashamichelle5819
    @natashamichelle5819 Před 3 lety +2

    Love your videos! Very informative for beginners.

  • @ranjancom2000
    @ranjancom2000 Před 3 lety

    Pls make a Video.... How company use the IPO funds in their business, In what way they trafrase the money to their business account

  • @jemsncrystals
    @jemsncrystals Před 5 lety +1

    A very basic question: why is that i get no profit of the company's sales of their products, when i have their shares??

    • @claytrader
      @claytrader  Před 5 lety

      This playlist should help claytrader.com/blogs/trading-101/

    • @jemsncrystals
      @jemsncrystals Před 5 lety

      ClayTrader ok i watched that. Bit still confused. Why would a company not give its operating profit to shareholders?
      Also is it true that the price of the share is the price on which it was last traded on. So it doesn't has to do anything with the business that company has done for that day?
      Also how many shares do a company keeps to itself to be an owner?
      And if i get one share of a company and that doesnt makes me to get profit, then will it also be true if i get 49 percent of shares too?
      M confused
      Thanks

    • @claytrader
      @claytrader  Před 5 lety

      Again, all those questions are answered in that playlist.

    • @jemsncrystals
      @jemsncrystals Před 5 lety

      ClayTrader first 4 videos are private on your playlist. And i think those would be those basics that i need. And on your blog the entire playlist is not there. Please help

    • @claytrader
      @claytrader  Před 5 lety

      If you want to "talk stocks/trading in general", that's the entire idea behind my private community here claytrader.com/innercircle/ which you are welcomed to join.

  • @willybirdiewilly7319
    @willybirdiewilly7319 Před 2 lety

    Gee, thank you dude. it's simple and understandble. now let's buy some stocks

  • @Unitedred45
    @Unitedred45 Před 2 lety

    How do you sell shares of your own private corporations

  • @sanghamitramridha620
    @sanghamitramridha620 Před 4 lety

    i know just the basics of stock exchange like there are buyers & sellers but my question is once a share is sold for say at 10 dollars it becomes the property of that shareholder & now when the price of that share increases he gets the profit & now when he sells the share he gets the money so how does this help the company as the share is already sold ?

    • @claytrader
      @claytrader  Před 4 lety

      The higher the price goes, the "more valuable" the company itself becomes

    • @sanghamitramridha620
      @sanghamitramridha620 Před 4 lety

      @@claytrader and thats the only consideration for the company right ? thanks

    • @claytrader
      @claytrader  Před 4 lety

      @@sanghamitramridha620 yup

    • @sanghamitramridha620
      @sanghamitramridha620 Před 4 lety

      @@claytrader okay thank you so much

    • @claytrader
      @claytrader  Před 4 lety +1

      @@sanghamitramridha620 you're welcome

  • @andreiandrei8647
    @andreiandrei8647 Před 2 lety

    Can companies emit new shares? Isn’t that going to decrease the individual share price owned by the investors? Something like printing dollars?

  • @H2Ojellyfish
    @H2Ojellyfish Před 3 lety

    What does issuing shares mean?

  • @cellan452
    @cellan452 Před 2 lety

    Sorry im late but what happens when i buy all of the “pizza” do i get a 100% of the profit.can u pleas tell me what happens its been stuck in my head for a long time and i cant find a anwser

    • @claytrader
      @claytrader  Před 2 lety

      It means you "own the company"... that would require A LOT of money on your part.

  • @zangsoong8943
    @zangsoong8943 Před 3 lety

    wat abt buying expanding factories ,land ,...more buildings

  • @deltabeta5527
    @deltabeta5527 Před 3 lety

    Thanks to the person who asked the question

  • @thezmas5261
    @thezmas5261 Před 3 lety +1

    Thank you for making it simple and easy to understand :)

  • @H2Ojellyfish
    @H2Ojellyfish Před 3 lety

    What Does capital mean??

  • @erikrose7041
    @erikrose7041 Před 3 lety +1

    Wait... so the stocks value is actually just the perception of value based on supply and demand and not based actual profits of the company? Dividends are the actual payouts of a companies profits?

    • @claytrader
      @claytrader  Před 3 lety +1

      Correct. It's all perception...

    • @erikrose7041
      @erikrose7041 Před 3 lety

      ClayTrader ok but the stock is actual real stock in the company right? So if I own 50% of the shares of a company (let’s just say that’s 10 shares), and I have bought these shares for $10 each. If the company becomes very valuable and profitable in the real world yet for whatever reason nobody buys the stock, when that company itself gets sold to another company would I be entitled to 50% of the price sold for seeing as I own half of the stocks? Thanks

    • @claytrader
      @claytrader  Před 3 lety

      @@erikrose7041 this should help claytrader.com/videos/stock-make-money/

  • @soham__palit
    @soham__palit Před 3 lety

    How do small companies manage to increase funds after getting registered in stock market???.......I mean what makes people to invest in those companies......please make a video on this......

  • @yalmadiable
    @yalmadiable Před 2 lety

    the IPO is set for certain number of shares which will be floating in stock market, how the company pays an acquisition with shares they don’t own? Or you mean they pay from the non public shares?
    It’s confusing a bit

    • @claytrader
      @claytrader  Před 2 lety

      They can create more shares.

    • @mthoko_n
      @mthoko_n Před 2 lety

      @@claytrader If a company can create more shares then why doesn’t the net worth of its shareholders increase since they also own authorised shares that are not trading on the stock market?
      Doesn’t creating more shares mean they’ll own more shares?

    • @claytrader
      @claytrader  Před 2 lety

      @@mthoko_n no, not unless they buy more. It's called "dilution".

  • @stonewallis4373
    @stonewallis4373 Před 2 lety

    Clays been hitting the weight room

  • @dexter7185
    @dexter7185 Před 2 lety

    Company raise money from IPO can they raise money and after few months go under and shareholders will lose money ,how this is secure?

    • @claytrader
      @claytrader  Před 2 lety

      What do you mean?

    • @dexter7185
      @dexter7185 Před 2 lety

      @@claytrader I just wonder when company go public they issue shares and how they get paid for this shares and by who?

    • @claytrader
      @claytrader  Před 2 lety

      @@dexter7185 by investment bankers and the general public.

  • @avirooptalapatra2796
    @avirooptalapatra2796 Před 3 lety +1

    I am 14 how to invest in share market in india

    • @claytrader
      @claytrader  Před 3 lety

      Here you go: claytrader.com/videos/how-to-invest-money-as-a-teenager-step-by-step-advice/

  • @marlonelias
    @marlonelias Před 4 lety +1

    He's good looking!.!.

  • @pratibhaborse9706
    @pratibhaborse9706 Před 5 lety

    how to invest in nyse being an Indian

    • @claytrader
      @claytrader  Před 5 lety

      You'd need to find a broker who allows it. I'd start with Interactive Brokers.

  • @davidpark1198
    @davidpark1198 Před 3 lety

    Why cant a company just print more stocks? I mean I kind of get that the stock price decreases but how do people know theres more stock and how does the price actually drop?

    • @claytrader
      @claytrader  Před 3 lety

      They can... that's called "dilution".

    • @davidpark1198
      @davidpark1198 Před 3 lety

      @@claytraderOh so companies can just keep on diluting and sell stocks so that they can make more money?

    • @claytrader
      @claytrader  Před 3 lety

      @@davidpark1198 to a point

    • @davidpark1198
      @davidpark1198 Před 3 lety

      @@claytrader Oh but I would guesd they lose control of the company if they print too much

    • @claytrader
      @claytrader  Před 3 lety

      @@davidpark1198 yup!

  • @youden3341
    @youden3341 Před 3 lety

    So if company ABC wants to buy XYZ let's say for 40 million they can give 20 million in cash and 20 million worth of share. My question is might be silly but does ABC buys 20 million worth of XYZ's shares or gives the XYZ 20 million worth or its share

    • @claytrader
      @claytrader  Před 3 lety

      Sorry, I'm kinda confused what you're asking.

  • @moinshaikh4353
    @moinshaikh4353 Před 3 lety +1

    Owsm

  • @kbtravel3066
    @kbtravel3066 Před 3 lety

    Would not it make investors rich also? Now these initial shareholders during IPO could sell and invest in the company

    • @claytrader
      @claytrader  Před 3 lety

      Yes, investors can build wealth also.

  • @lrroque2533
    @lrroque2533 Před rokem

    How company benifits from money of day traders?

  • @ketholekhomechulho6902

    M I not getting it Or did he just said "XYZ" On purpose 4:42? Its making sense to me if he said "ABC" Raises share to 75$. Somebody please revert

  • @gilgamesh310
    @gilgamesh310 Před 2 lety

    Another good reason why companies would want the value of stocks to increase is because it means the executives(and in certain cases employees) wealth increases. They can be paid in stocks.CEOs mostly are, and the if they’re founders their wealth could greatly increase. 99% of Jeff Bezos’ wealth comes from the value of Amazon’s stocks increasing considerably.

  • @dhyanmukta
    @dhyanmukta Před 2 lety

    NICE SHIRT

  • @vishwajeethjk9290
    @vishwajeethjk9290 Před 5 lety

    Thanks you, suggest me a best trading app in India.

    • @claytrader
      @claytrader  Před 5 lety

      I'm in the USA. I have no idea.

    • @vishwajeethjk9290
      @vishwajeethjk9290 Před 5 lety

      @@claytrader please suggest any one

    • @claytrader
      @claytrader  Před 5 lety

      @@vishwajeethjk9290 I am not familiar with Indian brokers, sorry.

  • @riteangles01dt28
    @riteangles01dt28 Před 2 lety

    It sounds rational that companies have flexibility to take risks but in these terms, they employ the investors money rather than their own.

    • @claytrader
      @claytrader  Před 2 lety

      And no one forced their investors to invest.

  • @Dan-1031
    @Dan-1031 Před 2 lety +1

    I thought I was the only one

  • @fdggfgdfgd251
    @fdggfgdfgd251 Před 6 lety

    Can a company make $45 bill just because they are a stock market?

  • @kahntul-ay2500
    @kahntul-ay2500 Před rokem

    This justifies what the books say: "Money Is Just An Idea".
    People buy into company stocks which is just an idea and emotions. Hype drives the market up while fear drives the market down.