What it means to buy a company's stock | Stocks and bonds | Finance & Capital Markets | Khan Academy
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- Опубліковано 27 вер 2013
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What it means to buy a company's stock. Created by Sal Khan.
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Finance and capital markets on Khan Academy: Many people own stocks, but, unfortunately, most of them don't really understand what they own. This tutorial will keep you from being one of those people (not keep you from owning stock, but keep you from being ignorant about your investments).
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I graduated from HBS with Sal. Now I'm showing these videos to my middle-school aged sons to teach them. Awesome! Thanks for doing what you do, Sal!
Thumps up
Omg
Wowww
wait so while you were in school you had kids?
he has kids who are watching these videos now@@froggyfinn09
"a loan to me is a liability which we'll talk about in a second"
suddenly im anxious
This guys know it's all. Chemistry, bio and business??
and statistics!
And geometry
GMAt gre
somebody ask this man what the cure to cancer is
Amazing, really helps me understand balance sheets and what Ben Graham is trying to say in his book The Value investor. Much appreciated
Thank you so easy to understand
Great information in laymen terms. I'm embedding it on my website :)
Simple yet very useful.
i love the khan academy. Very useful videos, much appreciated!!!
Thanks. Really well explained!!
Google a bunch of the numbers: ‘june 30 2009 december 31 2008 current assets cash and cash equivalents 202,656’
First result: CTI Industries Corporation Reports Second Quarter 2009 - Bloomberg
Ha! Good job! Gold star for you!
gah dayum
this video explains it better than most of the books I own. even my niece got it and she is only 12
very clear explanation...thanks much.
I am Havering way to much of a hard time understanding, but I am of sort of getting the idea. Great video khan
Wow this was so informative. 😳
This is really useful and expensive info. How awesome :-)
I love you Sal Khan. You are an inspiration.
Thank you so much for this video. I will share it with my 12 yr old son.
I have a business degree and was never taught this. Thank you! Makes sense
Wait, this dude tutors Bio too, so well.
Thanks for your sharing 😍
Thanks again Sal. 😊
THANKS ALOT DEAR
Much love and gratitude
Very helpful thank you
Thank you very much. Good introduction.
Thanks Salman! Always super helpful. I might be mistaken but when I look up various major companies, it appears that they're trading several times higher than their book value. Does anyone have any insight in to how that plays in to things? It seems like it's hard to use the book value as an anchor when investing in those companies.
Thanks for the video
Thank you. Easy to understand. I related to the housing market when trying to understand the terms and relations here since that is my personal experience.
Let me buy you anything you want 🙊
legend, thank you
Well done!
Great video thank you!
Wow I am really happy to know this.
Thankuuu this was so good
I'm 16 and getting into stocks I want to be an investor and these videos are helping so much
Nice!
im 15, and getting into this as well, would you like to study with me, just to learn how to trade, etc.?
Trūë SAvAgE id love too!!!
so that way we can talk on irc instead of email
Study Actuarial Science to get an extra edge in understanding Stocks
very clear! thanks
Thanks.
Almost anything can learn from here :) !!
whos here from the GME stuff going on
Who isn’t lol
thanks Khan you are the best :)
This guy is pretty much all knowing.
This man is genius "Oh, I'm not going it too much"
🤣🤣🤣🤣
Thank you.
Thankyou sir❤️❤️
Hi, I'm trying to do the math on IBM using your information but it seems like the numbers are not right. Would you mind walking me through it going off the information that yahoo provides?
Great video
What a great video
The best.
Is that Balance Sheet from Research in Motion??
Great Video
How did you figure that out?
Why does it have 2.78 million shares and not 100 or 5000 or 2 shares? Is there a reason why the company divides its equity in exactly 2.78 million shares? Or is it irrelevant to know?
double? An understatement thr my friend...
So how should you decide to buy or sell? Did I miss that
You're telling me Apple has an equity of 850B since that's there market cap? I can only imagine their total assets.
Pretty much if you learn accounting, you will find out that a lot of terms are shared, but have different definitions
Pretty much that if you learn all financial accounting concepts, you'll have a much easier time in understanding stock markets without learning economics
So how the company calculates the 8m while according to the market it is worth 7? The difference is quite significant. Who determines how much the company can put down as a value of equity?
So if I buy a stock/share that means that from the company's income I get some precentage?
I know this comment is a year old but I feel obligated to mention, since nobody has mentioned the answer to your question. The answer is yes, it’s called dividends. A dividend is a little “paycheck” for each stock, and it is a percentage of the company’s profit, if they had any. Different companies decide if and how much of their profit to pay to shareholders, and when. Dividends are not related to (though expectations about dividends can drive) the price of the stock itself. It’s just extra money, added on top of / regardless of price movements of the underlying stock. Also, contrary to other replies, you don’t “technically” own the company if you own enough shares. You *literally* own a portion of the company determined by the exact fraction of their shares you own. Owning 1 share makes you an owner. You may be a very small owner, but you’re still an owner.
@@ryanfranz6715 How much do you have to pay for stock such as Publix
...And does Publix take money out of your paycheck to put into your stock?
@@tony46126 not all companies are publicly traded, including Publix. A publicly traded company (PLC) must meet specific requirements and register with a stock exchange. There’s a great video series on value investing (preferably watched after this series) by youtuber “Preston Pysh”. Just search that UA-camr and a series on “value investing” should be one of the top results.
@@ryanfranz6715 How do companies pay you? How does it work? Does it go straight to your bank account?
@@yaboylucas2371 You need to open an account with a registered stock broker. Some online examples include: Charles Schwab, E-trade, and Robinhood, although anyone with a broker's license will do. Maybe your neighbor has such a license and has a company called "Joe's Stocks". There's plenty of options. Once you have that account, you may transfer money to and from that brokerage account by any method supported by your broker, usually by linking one of your existing bank accounts to allow direct transfers. When you buy stocks (technically you ask your broker to buy it for you), that money is taken from your brokerage account. That money is gone and replaced with a certificate, held by your broker, saying you own X shares of a company, meaning you're a part-owner of the company (the fraction being shares you own divided by the company's shares outstanding). When the company's owners pays themselves (hey, that's you!), a dividend is given to each outstanding share. That money goes straight into your brokerage account, where you can either transfer to your bank account or re-invest that money.
mistake i found - u say book value instead of equity. Their different.
So technically Sal Khan knows everything from Maths to Science and Engineering. OMG, even Business; there we go!
Sal always says, "If you believe..." do companies often lie on these forms? I imagine that is some sort of fraud
Watch American Greed*
Life in accounting...
Boss: These numbers aren't right.
Employee: Well, what do you want them to say?
How can I find out how many shares a company has?
great
How many shares does someone need to buy at $3?
@ColoredSpaces
So how much money do u need to open a company up?
So what happens after you buy the share ? & Where do you go to actually buy a share?
How do you know many shares?
How do they decide how many shares to issue ?
It's a random number, there's no blueprint to it. Directors and or Shareholders decides that figure.
as many as they can
lifesaver
How did you know Company X has 2.78 shares?
i'm 18 and i have nothing to do with accounting because i'm studying in medical industry sector and i want to prepare myself i want to invest once i have enough money to be a minor investor and maybe a major investor learned a lot
Can we divide a million in equity into a billion the same way? Please answer.
the unnamed company is CTI industries inc. They manufacture film products, ie packaging and containers, but most notably the make balloons.
Can you make a video of where you would start to trade stocks? I'm 16 (I assume that you need to be 18 to purchase stocks) so I don't think that it would directly apply to me, but I have always wanted to know for future reference.
Hey Jack! From the looks of it, you're 24 y/o now. Did you ever invest? If so, in what?
It's also done if the investor needs to cash out for some reason; perhaps they need capital for something else, or if it is their retirement fund and thy want to spend it now that they are retired.
does taxation on such capital gains count as a liability? are the shareholders responsible for it? or is company x?
i am almost sure that the shareholder is taxed on their returns, so the shareholders are responsible.
Do you have a video on how to actually buy a company stock
try Robinhood for stock trading
They get their money back either by selling their shares, so they're no longer owners in the company, or by temporarily selling to others the rights to any appreciation on the stocks they own. This is called "selling a call option."
Selling one's stock or the stock's call options are only done if the seller believes the stock will decline.
So if you buy 50 share out of 100, does that mean you own half of the company?
yes
Hector Saucedo no
no, you own half of the company's assets. Which is a good thing, because you don't want to be owning their liabilities too anyway
no no no it means you have 50 shares
Hector Saucedo yep
Now i have a better idea. I think most people don't know what you show in this video.
Thanx
just wana ask what does Avg Vol ( 3m) mean ? 3months of volume is 3290.16 piece of stock transacted out of the 2.78 M pieces of shares ? meaning for 3 months only 0.00118 % of the outstanding shares is being play around the market ?
sorry if wrong I hope some one can help
The same shares can be traded over and over. The same share could change hands 10, 20, 30x in one day.
I'm 15 btw. A house isn't an asset because every month or so it takes money from you, same as a car for example. An real asset is something that gives you money
nope
Bond sold in 2020?
Okay but how does this help the business?
Guys should I invest in Company X, Y or Z?
Imaa #share this video lol
Sooooo are we going to talk about bonds or..
Fucking Great Video!!!! So well explained about what a company's share meant. with just 2 questions in my mind:
1: how does the number of a company's share is determined, in other other word, how did the number 2.78m shares come from
2: Can a company's share be bought out,? So what happens if the 2.78m share of this company is owned by some people and other investors want to buy more shares of this company, what happens then?
Thanks for making and uploading this video. Double thumbs up for u!
2.78m number is determined by the company (maybe board or maybe shareholders themselves depends on how the company is set up). Company's can be taken over by an inventor who buys a majority of the company's stock. Sometimes an investor that wants to take over a company will advertise that he wants to purchase the stock at a certain price, and some stock owners may sell at the advertised price. Some stock owners may not sell and the purchasing investor may attempt what is called a "squeeze-out" (en.wikipedia.org/wiki/Squeeze_out). Sometimes investors will attempt to purchase a company but the owners of the stock don't agree on the price, sometimes the disagreement about the price may end up in court; the court would determine the value of the stock and that whole process is a mess.
thank you very much. very informative
so just to be clear about what I understand about what you just said, the company board or maybe shareholders(seems to me who ever controls the company) come up with whatever number pleases them/whatever they think is right as the the number of the total shares of the company?
A house that you live in is not an asset, but otherwise great vid ;)
Zakawaka45 holy shit are you kidding?
james lam read rich dad poor dad...
+Kurt Core An asset is just something that has value. It does not need to generate value.
+Diph Ling
kiyosaki's definition of assets is wrong haha
I think you're referring to Current assets, yes it's not, but it's considered an asset (other assets).
Can you talk about Canadian RRSP? How to calculate RRSP contribution and how much tax refund you will receive?
He sounds like vladtv
did anyone figure out what company is this
What happens to the people when they've bought the shares. How do they get their money back.
6:01 Did he just slip-up and say shit instead of share XD
Yes, but he caught it fast and smoothed it over really well. 😄
FINALLY SOMEONE SAYS IT
what exactly is the job of the analyst?
research, writing docements, small media.
i worked in accounting, i am a carpenter now. i work with several ex-analysts that hated it, whom are also tradesman now.
more $$ and less work lol. im 25 and make 25$ an hr.
2;05 rich dad is angry !
A company is selling 1 share for 10k and they promese 500 a month is it real
What company
umad
AGREE ! Aashiqon ne toh aashiqui ke liye Taj Mahal bana diya ... saala hum ek sandas na bana sake -Biwi paas chahiye toh ghar mein sandas chahiye - Please spread the message to all you tubers.
6:00 big swear word
You misidentified the second clause--it's independent. And even if it were dependent, that wouldn't preclude using a comma.
You can learn more at owl.english.purdue edu/owl/resource/598/01.
I don't care that your capitalization and punctuation are limited or nonexistent... you've even improved from your first comment. But, given your troll attitude, kindly understand if I vote your comment down, and ignore you henceforth.