*Looking For Crypto Market Cap? Watch this:* ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qz-pbhbPbug.html *OR Watch this for the next Market Cap (Enterprise Value) lesson for STOCKS:* ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bH-bz1iIyy4.html
Love your videos. Its hard for me to understand couse of my bad english skills, so i have to stop every 5 minutes, but its so interesting ! And on top of that such a handsome guy :P
new to trading and my question shows - if a company was going public tmrw and they have decided they will issue out 1M shares of stock, when the market opens what happens if all of the issued stocks are not purchased - lets say at the end of the day there's 500K outstanding.
I have a video called “where does the money go?” That answers this better. Basically the company sells shares to an investment bank who then sells them to others for a higher price. When the IPO day comes all shares are owned by someone or an investment bank or multiple investment banks.
Thank you!! You’ll enjoy this one too I think which is a more recent video on the overall things beginners need to know and the fundamentals of stock investing :) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EcPZJpIGYcc.html
@@IntelligentStockInvesting thx for your quick response! 🙂 I mean i bought Shiba coin at 0.0000145 and market cap is 11,039,163,282. Want to know can it go 10X up, thats 10 000% right?
I guess anything is possible... however, I don’t have any predictions about that. I like to stick to stocks because I prefer to own assets which generate cash. Crypto is more of a lottery ticket type of purchase. You may enjoy this video I did specifically about crypto: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-K6aHYqIZL2Y.html
Hey Alec, no problem, my pleasure. I’m glad you enjoyed it. Thanks for commenting! Let me know if you have any questions along the way in your investing journey, I’m happy to help :)
That's like one of the greatest comments I can get! I'm very happy to have helped you with this realization! Can I suggest you watch this one next? :) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EcPZJpIGYcc.html
Loved the specific examples with companies that everyone can relate to. Also, the way you explain stock splitting, really sheds light on the meaning. Great job!
Hi Mirul, Apple does have the highest market cap yes however this does not necessarily mean it's the most expensive. How expensive a company is will depend on how much money it makes and how much money it will make in the future. If one company had a Market cap of $1 trillion dollars and that company earns $50 billion of profits (A price to earnings ratio of 20) VS. another company with a market cap of $500 billion, but earns only $20 billion of profits (A price to earnings ratio of 25) . If they're both growing earnings at the same rate, the $500 billion dollar company is more expensive. Does this make sense? If not I can try to explain another way. This market cap video does not get into the price vs. value component of value investing.
Hi!! I have a big doubt here. Just to simplify the example.. Lets say i have a company... I go public , and i have 10 shares..10 usd racha, ok.. my company is worth 100 usd... But, in the secondary markey, due to speculation and demand/supplie law, they are selling at 20 usd... So... mi company is worth 100 usd ? ( 10 x 10) or 200 ? ( 10 x 20usd) I would apareciate an answer..if domebody understood my question. Thanks
Hi Rodrigo, Market price and underlying value are different. That's how value investors seek to maximize their investment returns: by buying shares when their market price is below what they're worth. What a company is WORTH, and its PRICE is two different things. Often they can be the same or close to each other, but sometimes there can be large a discrepancy. Check out these videos for a deeper understanding: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-xeI9dAR1fEo.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I1Pk7JUqjno.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xlbnbq684GI.html
@@IntelligentStockInvesting so this hypothetical beginner (and I have to stress the descriptor BEGINNER) is supposed to do this analysis in order to not deserve your condescension?
No offence was meant. My answer is just straightforward. To value a company you look at how much profit it makes currently, and you make an educated guess about whether that will continue in the future. This is found in the financial statements and by using your brain for some critical thinking. For most companies that will be too hard to do so a lot of companies you look at will go in the “too hard” pile. There is a learning curve but it’s not impossible by any means. Beginner just means you have more to learn. Good luck. The learning never stops in this endeavour so fall in love with learning and thinking.
Hi Grecia, stock splits don’t mean issuing new shares, no. Stock splits are like if you have a $100 bill and it gets turned into 5 $20s. Yes the number of shares outstanding has increased but the shares are each worth proportionately less. The graphs that show shares outstanding over time have been adjusted for stock splits :) hope that helps answer your question.
I think they must be referring to the market cap already being very high. It's easier for a $10M company to 10X to a $100M company than it is for a $100B company to 10X to become a $1 trillion dollar company. I wouldn't advice focusing on what the price will do though... check out this video on short term vs long term stock investing: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-BQ4_Nsfhhbc.html
There's certainly a lot of people treating it like that!!! Not me though, and that's not what I teach. It makes more sense to me to exploit that fact rather than become one of the gamblers :) Thanks for watching!
I go into the math of that in other videos but essentially think of it like this: If someone offered to sell you a money tree that would live forever and give you $100 every day immediately and the amount it gave you would also increase slowly at a rate of 5% a year. What is the most you'd be willing to pay for it? $1M would be too expensive... but what price would would be a good fair price you'd be willing to pay? That's what you're doing when you value companies :)
No problem! John, just curious if you don’t mind, what prompted you to look this up? (Just wondering because I’m noticing there’s a lot of people looking this up in the past couple days) thanks!
@@IntelligentStockInvesting I like how explain things, you make it simple to understand which is always good! There are so many subjects I am interested in, at this point I am interested in finding "hot sectors" and good performing stocks in those sectors or just in general.
Perfect!!! If there's anything else you'd like to see let me know! And if you're on facebook feel free to join our group: fb.com/groups/intelligentstockinvestors
Hi thanks for your valuable information I have a question about market cap , how is if a company has a market cap of 15 billion dollars and a share price of 10 dollars and an assets of 60 billion. If some someone buys 30% of the company's share with value of 4.5 billion does the new buyer owns 30% of the assets too ?
Hi Bijan, yes if you own 30% of the company it means you own 30% of the assets, but also the liabilities, so in otherwords you own the 30% of the company's equity. Check out this video next: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bH-bz1iIyy4.html :)
Hi Bijan, yes if you own 30% of the company it means you own 30% of the assets, but also the liabilities, so in otherwords you own the 30% of the company's equity. Check out this video next: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bH-bz1iIyy4.html :)
Awesome Christine! Welcome! let me know if you have any questions along your journey. This is a good one to check out that covers the fundamentals of valuing a stock :) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ilfeKFmbURc.html
Market cap is share price X number of shares (also known as as share outstanding) Shares outstanding is usually pretty constant but can change when a company issues more shares or buys back shares… share price is always changing anytime anyone buys/sells shares.. Net profit does not directly affect market cap, but net profits will influence people’s opinion of the value and they will buy and sell shares based on that opinion.
@user-ll4td8vy2z I have other videos on how stock market works and why stocks go up and down. Watch those first and if you still have questions post a new comment so I see it instead of a reply
You can see it in the financial reports that companies put out but you can also go to yahoo finance, look up any company, and go to the statistics tab and you'll find it half way down the page on the right side.
@@IntelligentStockInvesting I did find out the share being issued in the second quarter of 2021 but it does not seems fit the share issued in current market. Also, I realize that the market cap display on yahoo finance is different from the app that I am currently using to show the statistic of current stock market.
@@yanbinloh4728 Market cap is technically always changing every time the price per share changes all day long but most apps and websites update market cap once a day based or every 15 minutes for example so that's why it can be slightly different depending on where you're looking.
Thanks!!! Glad to have you :) Let me know if you have any questions along the way in your investing journey or topics you'd like me to make a video covering :) Have a great day Artūrs!
Hey Richard! Love your down to earth/easy to understand way of explaining things. Quick question, I’ve always been confused by the concept of ‘#of shares outstanding’ Say a company has 500 million shares outstanding, but only 400 million are currently bought and owned. Would that change the # of shares outstanding? Also, is there a direct correlation between # of shares outstanding and share price? Sorry for the Noob questions. Any guidance would be greatly appreciated, plan on watching more of your videos, good stuff!! 👍
Hey Eric! My pleasure! So if there was 400 million shares "bought and owned" as you said, it would mean that there are 400 million shares outstanding. If a company buys back shares and doesn't retire them, those shares are held as "treasury shares" because they may be re-sold in the future to raise money, but those shares aren't relevant to the shares outstanding count (those shares are owned by the company which means they're owned by the shareholders - you). The shares outstanding are the ones that are "bought and owned" .. With that said.. If there are stock options or warrants out that can be redeemed for shares, this is when you'll see the "diluted shares outstanding" amount - this is the total shares outstanding if hypothetically all options and warrants current out were to be redeemed for the shares... Hope that helps and didn't add extra confusion! This is a smaller detail and as you continue to learn it will all click into place. The important thing to know about shares outstanding is that share ownership = company ownership. If you own 1% of the shares outstanding it means you own 1% of the company. Shares of stock are just business ownership. And the best investors buy that percentage ownership when it's trading at an attractive price! Let me know if you have any follow up questions, I do want to help!! :) This video is a good follow up one to watch next: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I1Pk7JUqjno.html
Hi Collin, yes I can help? What would you like to learn next? This video is a good one that covers the foundations :) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EcPZJpIGYcc.html
Thanks for the feedback. this is one of the first videos I made. Please check out one of the new videos I've made (with the yellow thumbnails) and tell me if it's still unwatchable.
@@IntelligentStockInvesting - Actually I have a perfect idea/topic for you! I was reading about Nancy Pelosi and her husband spending 3 Million on call options earlier tonight. For some reason - I cannot put my head around it to understand it. The options have strike prices below their current prices, but people are saying it's them betting the market will do well in 2022.
@@JDOPost I can answer your question here :) When you buy calls you're making a bet that the stock will go up (when you buy puts you're betting it will go down).. so she thinks those stocks will go up. I don't buy calls or puts myself because it's mostly just gambling. The only time I would buy a call is if was a far out dated call like 2 years expiry date (also called LEAPS), and i thought the stock was very underpriced and the options also were mispriced. This is not the case here. Shorter term options are very efficiently priced and so it's hard to make money with them consistently and systematically. With these calls that Nancy has bought. She could also be hedging a previous short position in those stocks. If she shorted the stock and then has now bought calls, the calls give her the right to buy the stock at the chosen strike price, so perhaps she's just protecting her short position. I wouldn't worry yourself about what Nancy Pelosi does at all though because there are a number of proven investors with successful track records that you can keep track of on websites like dataroma.com. Nancy Pelosi, in terms of stock investing is a know-nothing.
@@IntelligentStockInvesting - Thanks man! I actually went to Dataroma yesterday after watching one of your videos! 👍🏻 Also, I do think their Roblox play was set for 2023, so idk. I've heard she's been making a lot of money in the stock market. Some say it's insider trading and other say it's bc her husband is some kind of genius. 😂
Lol my bad I owe you one 😅 I assumed you were talking about crypto. So many people in crypto use market capitalization and I try to explain to them it doesn’t matter in crypto. But with out fully understanding the company/stock aspect of market cap I can not fully explain.... if that makes sense. Do you understand as to why it’s not the same as in a company/stock????????
No worries! ya I agree. In crypto it doesn't really matter at all. With companies/stocks it tells you what the price tag on the entire company is so that you can compare it what you estimate the value of the entire company to be. When the price tag is lower than the value it could mean a good investment opportunity :)
@@ADTabassum personally I would cut my losses with the crypto and focus on mastery stock investing. Crypto is like a lottery ticket but owning companies and buying them at sensible prices is a guaranteed way to eventual wealth.
Haha, filming these things isn’t easy. This is one of the first videos I did (but not even those most handsy) I think I’ve since got a little better. If I don’t use any hands though all enthusiasm disappears and I sound like a robot. Still learning how to be on camera :) thanks for the feedback :)
