Stocks | How Equity Earns You Money
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- čas přidán 12. 10. 2017
- The Plain Bagel Episode III
Shares represent a percentage ownership of a business. This video covers investing in equity, and how stocks payoff for investors.
Intro/Outro Music: www.bensound.com/royalty-free...
Episode Music (Licensed): freemusicarchive.org/music/Pod...
Sources:
www.bankrate.com/investing/mil...
www.businessinsider.com/50-cen...
data.worldbank.org/indicator/...
ycharts.com/companies/NKE/sha...
My dude, ive watched the first 3 episodes of this series and you have an exceptional way of explaining things. Im 24 and have a couple grand to invest, but I only had my parent's financial advice to go on. Keep it up. I want to learn more from you.
Wow, that's really kind of you to say, I'm glad you find the videos helpful!
@@ThePlainBagel Same here. Sciences, parents's advice etc. I just binge watched most of your videos and the quality is exceptional.
My parents too are very old-school when it comes to investing :) they only use gov bonds
5:36 indian IT employee who has old school parents who only invested in govt. bonds. i finally realised the value of investing and opened a demat last week. im 30 yo now, hope its not too late.
brilliant video btw
I dont think he’s wearing pants lmao... but definitely a great informative video
😂
I appreciated the caution in the beginning of the video about gambling with stocks being like gambling at a casino. I'm excited to learn so much so quickly, but don't want unrealistic expectations hindering my progress. Great video.
A stonk is a thing that only goes up. If you think your stonks are going down, then just rotate the chart.
This channel deserves more subscribers
You are so underrated i really love your content and you inspire me a lot thanks for such content Grettings from Mexico, loved Canada
Brotha you’re connecting the dots so well in my brain
These are some good-ass videos
Yes sir definitely
honestly i love your channel name. subscribed
Stocks are not a gamble, I lose probably 60-70% of my moves, but no more then a point maybe two, but that 30% keeps our family in a great spot. If you gamble for those 100 baggers you will lose 100% of your funds. Look but don’t forget your plan. Leave your feelings out of it. Trust your testing.. this is the best advice someone gave me..😊
Short and sweet. Thanks Richard.
clear explaination
I'm loving your videos (I'm probably going to binge through them tonight)!
Glad you find them useful!
@@ThePlainBagel glad that ur glad
Good job!
Very insightful information
This is so good dude
you should continue making these videos, they are so good to learn basic terms effectively!
Great explanation.
Me watching video: that guy must have millions subs
*looks at sub count*
WHAT
You deserve s much more Viewers my man, you are excellent.
On a side note, I would have like to learn more with Prefered Shares.
Hope you the best, amazing work! keep it up
Haha thanks! That's very kind of you
Great videos dude
Very good explanation.
That's how I'm going to keep learning more in the investing
Ugh your videos are great
awesome! you are exceptionally good at explaining these terms !!!
I didn't know I needed such information but GODAMN, I needed it!!!
Great channel 👍👍👍👍
Gracias
Your videos are very helpful and important also refreshing my information that I learned during College. Thank you
Thanks alot.
These videos are practical, applicable, and interesting. Great work!
Thank you!
@@ThePlainBagel your welcome
Sir
Well done! How about a show about what degrees are best suited for investors. Finance vs econ vs business etc
Finance
I have a finance degree. It’s good to have a background in the others and I had to take micro and macroeconomics as well as many other business courses anyways. Lots of career options for finance degree as well
I see what you mean by the country explanation 5:00. Think of the countries as businesses the one that's already started and is stable will yield a fair amount if not higher, the other one on the other hand will pay even more because of growth and room, considering risk and other factors.
My new favorite investment channel!
investing in crypto is lucrative and a big chance to make money online.
@@ruidasthompson9127 do u still have the same energy now
@@shivakumarnarayanan1165i bet he has
Plain bagel I hope u get a tv show
Great channel, it’s super helpful and everything is really well explained, good job! Question: could you explain the different types of orders: market, limit, stop and buy stop ? Thanks.
Nice suit
Thanks !
A very well made and informative video. Thank you.
Haha, glad you chose to drop that try hard suit. The smart casual look fits you and channel much better! Content is and was fab tho.
I don’t understand something. If a company decides to reinvest profits till the end of time- what’s the point of investing? If you never see an ounce of the profits why would anyone ever want to purchase that stock from me second hand? Are we as a society thinking clearly about it all if dividends are never paid, especially when there’s no penalty for doing so?
In theory the value of each share should be equal to the net value of the company (assets - debts), divided by the number of shares. (For now I'm simplifying, I'll refine this approximation later.) That's because, if were to simply decide by itself to stop doing buisness (its rare, but it can happen, for example, if a country's laws change and suddently make their product illegal or uninteresting), then it would sell everything it owns, pay off its debts, and then split the remaining value equally between each share.
If the stock's price were lower than this, then one could profit buying all the shares of the company, take over its administration, and then close it as I explained above.
So the company's stock price can never really be lower than its net worth, even if the company never pays dividends and always reinvest its profits in itself. In practice, it is usually higher however, since, as Richard explained, in addition to representing a fraction of the company's worth, a stock also entitles ones receive dividends (even if they don't pay dividends now, one that when the company matures, it might; and investors will evaluate that probability), and allows to vote on the company's decisions.
Wow, this is exceptional teaching. I have watched many videos, leaving confused, but your explanation is top notch, i understand everything you explained now. Your amazing. Keep it up. Great Job!!!
When I buy a share I am buying one part of the entety that owns assets(brand,builings,stores,factories)?
Great video😊 just have one question throught, how do you get bonds? Do you contact the company directly or is there a webbsite in which you purchaces bonds? Perhaps you can get it at the bank? Thank you for the answer.
US government bonds can be bought directly from the Treasury, I believe some states do that too. Typically though you'd go through a brokerage. They'll have a section of their website labeled "Fixed Income" or something like that.
If you don't have a lot of money to invest, you may want to start with a mutual fund (or its close relative the exchange-traded fund) that invests in bonds. That way you can spread your money across several different companies.
In my teens and learning about investing and your videos are very helpful and well explained. Appreciate the content.👍👍👍
how is it going ?
Hi idk what's your name, but anyway I have a question, so preferred stock is like the middle ground between bond and common shares, let's say when a company goes into bankruptcy, bond holder or the preferred share holder gets the priority in getting the recovering fee first? Is it Bond holder over prefer share holder? Or just bond holder gets it, and prefer share holder only get prior on dividend over common share holder? Thank you Mr Bagel 😁
Bonds get priority in recovering their losses over preferred shares, and preferred shares get priority over common shares. Hope that clears it up!
Good afternoon
How does capital appreciation and productivity effect price?
Meaning the stock price of the company? It increases it.
2 + 2 is 4 - 1 that's 3 quick maffs
@@Hyperpandas no shit Sherlock
"there is no consequence in missing a dividend payment". In a future video, Richard will say "if a company misses a dividend payment, It indicates that the company is not doing well financially. Investors will lose faith in the company and sell the company's shares, resulting in a loss in share price."
He means no legal action will result from missing a dividend payment
He means no legal consequences. Of course the price will fall but thats due to sell offs.
He's a hypocrite....like you
I learned that the stock market was a rich man's game (yes, grandparents lost it all back then and preached that forever) but I've been around long enough to really taste how great it can be. To be profitable, with inflation at 6.1% These are surely desperate times, but in my opinion, there is no market condition that a good financial advisor cannot navigate, especially those that have existed since the crisis of 2008 and before.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
STEPHANIE KOPP MEEKS she is whom i work with look her up..
Thanks for sharing, I just looked her up on the web and I leave her a message.
aw yes, brazil was in the video
Only point I disagree with is casino statement unlike a casino where if u were to do research like ( count cards ) you will get kick out but stocks are easy to read about and then make a decision
What is this windows 97?
Windows 10
One of the oldest version of Windows Operating System.
Ok zoomer
This vid is 4 years old and definitely China wasn't lacking in infrastructure then. I wouldn't classify it as an emerging market
4:36
I wonder which country does "War Activity" in the Global South (developing countries)....hmm...I wonder which country has 800 military bases across the globe...
There is no *legal* consequence of missing a dividence payment. I remember pretty vividly how our share price plummeted.
High risk does not lead to high returns!
Is this person Canadian...
Do all stocks give dividends?
No, it's up to the company's management. Microsoft pays a dividend, Google doesn't. The general tendency is for younger and faster-growing companies to pay smaller or no dividends because they believe they can put that cash to better use (and help you get a better return) by reinvesting it into the company.
Companies can also change their dividend from time to time. There are companies that have steadily increased their dividend each year, sometimes for decades. There are also cases like Hawaiian Electric which recently suspended their dividend because they're probably going to be held partly liable for the Maui wildfires and that means they'll need cash.
how to make profit in equity market
What is a coupon payment?
A coupon payment is just another word for an interest payment on a bond
Groupon
I'd be skeptical about anyone ever using a Windows 97 computer.
What's the point of holding stocks that don't pay dividends? Is the only hope that someone else will buy it for higher than you did?
That is correct, the idea is that companies that don't pay dividends will reinvest the money into their business, thereby improving the value of their stock.
Yessir. You speculate that the value will rise and you will be able to sell for a profit down the road.
What's the point of life
Millennial here, got into investing a year ago, wish I started years ago
There is no widows 97 it’s ‘98’.
Ok boomer
Healthcare shouldn't be something investors get profits from
Anyway, your videos are pretty useful explainations, good work
Then nobody will invest in healthcare and raising capital to develop new treatments, hire more staff, and build more medical facilities becomes nearly impossible.
@@ElijahDecker When it's run publicly, they will still invest
@@ElijahDecker Most industrialiued countries other than the US have universal healthcare. Their coverage is better and cheaper, because there the government provides healthcare to everyone
Thank you
You know Windows 97 isn't a thing, right?
"Windows 97"...?
Why are there 61 stars on your US flag?
Ketchup effect
5:35, slight over simplification. Prices are different by country.
I'm here from 🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳
0:48, basically buy low and sell high. Or buy high and sell higher.
If not short it. Bet on it to decline.
No shit Sherlock
are you patrick stump?
Patrick star
Just because a company grows profits doesn't mean that the stock price will go up. That's why there's no set price as to how much the stock price will go up because the two are not the same. You probably think bitcoin's price increases based off of the growth of the company😂
I'd be quite curious to know what you could explain about market. Just to have a good laugh 😂
I bet you get all of your financial advice off of CZcams and tic tac and under the age of 35 😂
@@FLOODOFSINS So i guess if you go on insulting people, its cause you couldn't tell anything about market. We're not in fifth grade anymore. Insulting people wont make you look smarter and distract others on the fact that you couldn't answer.
This is valuable... but what?!
If I own 50% of my company, and the rest are outstanding shares, and you own 100% of them... surely you own 50% of my company, not 100% as suggested by this video? Please correct me if I am wrong
Why does that US flag have 61 stars?
Cuz yo mama spans 11 states
Thats not the definition of growth and value. Growth stocks are highly valuated companies that are anticipated to grow in the future (hence expensive) while value stocks are unsexy companies with bad future prospects (hence cheap). This has nothing to do with size. You can typically differentiate growth and value stocks via book/market ratio or price/earnings.
im tryna get away from the casino and u gonna say that
Rick Fiorentino it’s not true at all. i’m making thousands every week from the market and i’m 17. this guy sounds so uneducated by comparing the stock market to the casino. watch some videos that will give you an actual understand on the market or read the intelligent investor by benjamin graham.
@@jakespitko843 if u listened Jake he didn’t say the stock market is a casino
@@jakespitko843 bet u have a girlfriend in Minecraft too
The investment made by the foreign institutional investors tends to create more volatility in Indian stock market as the involvement of domestic investors are less then the FIIs
1:33, they in general don’t have stocks on offer.
China is not an emerging market. Point of correct
How is China in that category... WTF
"There are no consequences of missing a dividend payment"
My boss objects to that.
If you dont know stocks you should not own them - Random youtube comment
Where are you from For everyone who gets discouraged over trades not going their way, or not getting results and getting frustrated. There's one thing I can say, keep moving. Little minds rise above it. I say this because i accumulated a lot of losses from trying to trade alone to buying bad signals and it's never advisable to enter the market without basic knowledge because it's quite complex as a beginner and you ought to understand the market trends and different algorithm. Well with out talking much I would like you to contact mr Andrew for more information he has been the one behind my success contact him now at ((Andrewwilliamq1@gmail.com)))
@@rolandjosh8238 so ur a small brain
Sorry, but you know how us internet people are :)
I'd love to invest but of course you need money to make money. Fuck me I suppose
theres no windows 97 lol
Ok boomer
Tell me in Hindi
Accept I am a millennial and invested in stocks.
investing in crypto is lucrative and a big chance to make money online.
@@ruidasthompson9127 I would pass. It is impossible to value crypto. Which to me suggests it is valueless.
@@ruidasthompson9127 join my pyramid scheme
@@seanhartnett79 like your life
@@shivakumarnarayanan1165 well at least I have one,
did somebody say?
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