What it means to buy a company's stock | Stocks and bonds | Finance & Capital Markets | Khan Academy

Подписаться 9 млн

Просмотров 682 тыс.

50% 1

Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now: www.khanacadem...
What it means to buy a company's stock. Created by Sal Khan.
Watch the next lesson:
www.khanacadem...
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).
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: / channel
Subscribe to Khan Academy: www.youtube.co...

Опубликовано:

6 сен 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 237

@jimettamarna417 4 года назад

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!

@vishnupandrangi7160 4 года назад

Thumps up

@Ihavetoreturnsomevideotapes 3 года назад

Omg

@santhosh8290 2 года назад

Wowww

@froggyfinn09 9 месяцев назад

wait so while you were in school you had kids?

@ethanm021 7 месяцев назад

he has kids who are watching these videos now@@froggyfinn09

@enh9952 8 лет назад

"a loan to me is a liability which we'll talk about in a second" suddenly im anxious

@yinge101 11 лет назад

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

@Gothiqueluv 2 года назад

Ha! Good job! Gold star for you!

@oklano_menobi7946 Год назад

gah dayum

@jorgevargastx 4 года назад

This guys know it's all. Chemistry, bio and business??

@blueboystudios 4 года назад

and statistics!

@Lancersilva 3 года назад

And geometry

@santhosh8290 2 года назад

GMAt gre

@JESS-vz5gu 2 года назад

somebody ask this man what the cure to cancer is

@rubencrisitano9 6 лет назад

Amazing, really helps me understand balance sheets and what Ben Graham is trying to say in his book The Value investor. Much appreciated

@hwanlee5978 9 лет назад

Thank you so easy to understand

@kaitsakey6495 4 года назад

I have a business degree and was never taught this. Thank you! Makes sense

@evelynflores2439 5 лет назад

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.

@cyberslumz 4 года назад

Let me buy you anything you want 🙊

@nickraffone1598 8 лет назад

I'm 16 and getting into stocks I want to be an investor and these videos are helping so much

@feelteamsix3911 8 лет назад

Nice!

@S9V9G3 8 лет назад

im 15, and getting into this as well, would you like to study with me, just to learn how to trade, etc.?

@nickraffone1598 8 лет назад

Trūë SAvAgE id love too!!!

@S9V9G3 8 лет назад

so that way we can talk on irc instead of email

@MJtheFellowActuary 7 лет назад

Study Actuarial Science to get an extra edge in understanding Stocks

@angel.7.7.7.7 7 лет назад

Thank you so much for this video. I will share it with my 12 yr old son.

@AhmedBalfaqih 10 лет назад

Simple yet very useful.

@jeroenwaning 10 лет назад

Great information in laymen terms. I'm embedding it on my website :)

@odinmp5 11 лет назад

this video explains it better than most of the books I own. even my niece got it and she is only 12

@ChrisGarrison72 10 лет назад

I am Havering way to much of a hard time understanding, but I am of sort of getting the idea. Great video khan

@sashanastitches 10 лет назад

very clear explanation...thanks much.

@brianwarner308 11 лет назад

i love the khan academy. Very useful videos, much appreciated!!!

@stevenmarkanthonyharpaul739 5 месяцев назад

Wow I am really happy to know this.

@jacksonsanders9363 2 года назад

I love you Sal Khan. You are an inspiration.

@jonahs.757 2 года назад

This guy is pretty much all knowing.

@alexanderhenderson454 6 лет назад

This is really useful and expensive info. How awesome :-)

@edmondmariga819 5 лет назад

Wait, this dude tutors Bio too, so well.

@GSU_Panther_Nation 3 года назад

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

@fleshcookie 9 лет назад

Sal always says, "If you believe..." do companies often lie on these forms? I imagine that is some sort of fraud

@Thegoatt84 8 лет назад

Watch American Greed*

@Gothiqueluv 2 года назад

Life in accounting... Boss: These numbers aren't right. Employee: Well, what do you want them to say?

@jag831 6 лет назад

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?

@bonkrood4629 3 года назад

whos here from the GME stuff going on

@piguy3945 3 года назад

Who isn’t lol

@williameddy8856 7 лет назад

Very helpful thank you

@dobcsek 6 лет назад

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?

@amiraboodi2075 Год назад

Thank you very much. Good introduction.

@elijah24567 8 лет назад

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

@papamegamind 6 лет назад

So if I buy a stock/share that means that from the company's income I get some precentage?

@ryanfranz6715 4 года назад

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.

@tony46126 3 года назад

@@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?

@ryanfranz6715 3 года назад

@@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 RU-vidr and a series on “value investing” should be one of the top results.

@yaboylucas2371 3 года назад

@@ryanfranz6715 How do companies pay you? How does it work? Does it go straight to your bank account?

@ryanfranz6715 3 года назад

@@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.

@chloelien7556 6 лет назад

Almost anything can learn from here :) !!

@abhinavitsmebellamy 4 года назад

Thanks. Really well explained!!

@RahulSharma-ln8kj 6 лет назад

You're telling me Apple has an equity of 850B since that's there market cap? I can only imagine their total assets.

@MichaelTaphouse 3 года назад

Much love and gratitude

@JUSTOVERTHINK 2 года назад

This man is genius "Oh, I'm not going it too much" 🤣🤣🤣🤣

@MrMarkgyuro 5 лет назад

thanks Khan you are the best :)

@BangzHomie 9 лет назад

Thanks.

@jasontheworldisyours 7 лет назад

How many shares does someone need to buy at $3? @ColoredSpaces

@engineering1O1 3 года назад

So technically Sal Khan knows everything from Maths to Science and Engineering. OMG, even Business; there we go!

@kaunghtetwin3149 4 года назад

Thanks for your sharing 😍

@Salvor_Hardin_42 11 лет назад

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.

@leonardopalacio5247 9 лет назад

How do they decide how many shares to issue ?

@Thegoatt84 8 лет назад

It's a random number, there's no blueprint to it. Directors and or Shareholders decides that figure.

@999locke 7 лет назад

as many as they can

@KoreanAesthetics 9 лет назад

So how should you decide to buy or sell? Did I miss that

@joshualipovetsky2744 2 года назад

Thank you.

@jack3604 11 лет назад

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.

@Gothiqueluv 2 года назад

Hey Jack! From the looks of it, you're 24 y/o now. Did you ever invest? If so, in what?

@marc.levinson 9 лет назад

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.

@jaykhan6524 3 года назад

Thanks again Sal. 😊

@jefesaidso 10 лет назад

So what happens after you buy the share ? & Where do you go to actually buy a share?

@justforfun4680 7 лет назад

mistake i found - u say book value instead of equity. Their different.

@played1994 8 лет назад

Thanks for the video

@genxmarketinggroup7153 4 года назад

Great video thank you!

@abbasakbar6597 8 лет назад

does taxation on such capital gains count as a liability? are the shareholders responsible for it? or is company x?

@oklano_menobi7946 Год назад

i am almost sure that the shareholder is taxed on their returns, so the shareholders are responsible.

@ninolora3573 6 лет назад

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

@Gothiqueluv 2 года назад

nope

@Heshanudugama 7 лет назад

very clear! thanks

@javinfinity7574 4 года назад

Thankuuu this was so good

@Yaalah 11 лет назад

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.

@ioannissakellariou5165 5 лет назад

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?

@vicheakeng6894 Год назад

How do you know many shares?

@ThomasFergus 11 лет назад

the unnamed company is CTI industries inc. They manufacture film products, ie packaging and containers, but most notably the make balloons.

@marcellenel9952 9 лет назад

Is that Balance Sheet from Research in Motion??

@muskankesharwani3151 3 года назад

Thankyou sir❤️❤️

@jorgipogi 11 лет назад

Can we divide a million in equity into a billion the same way? Please answer.

@RanochVTX 9 лет назад

Wow this was so informative. 😳

@desibiden3860 3 года назад

Great Video

@adnanfaisal5593 9 лет назад

THANKS ALOT DEAR

@tigadirt 6 месяцев назад

Okay but how does this help the business?

@tonymarino1730 4 года назад

What a great video

@mattk5592 7 лет назад

So how much money do u need to open a company up?

@jeffsellers5468 7 лет назад

Well done!

@AFirongeneral 9 лет назад

Can you talk about Canadian RRSP? How to calculate RRSP contribution and how much tax refund you will receive?

@marq2827 7 лет назад

Do you have a video on how to actually buy a company stock

@k.a.9415 7 лет назад

try Robinhood for stock trading

@hectorsaucedo4465 8 лет назад

So if you buy 50 share out of 100, does that mean you own half of the company?

@andrewcbuensalida 7 лет назад

yes

@ChannieChauni 7 лет назад

Hector Saucedo no

@thenovice4370 7 лет назад

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

@999locke 7 лет назад

no no no it means you have 50 shares

@shivangisrivastava6401 7 лет назад

Hector Saucedo yep

@stanleygqm 11 лет назад

double? An understatement thr my friend...

@daniboi1786 5 лет назад

How can I find out how many shares a company has?

@matthewjames7513 10 лет назад

legend, thank you

@NELSONG12 10 лет назад

Now i have a better idea. I think most people don't know what you show in this video. Thanx

@wmarkozalatar3732 7 лет назад

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

@rjjrdq 6 лет назад

The same shares can be traded over and over. The same share could change hands 10, 20, 30x in one day.

@jorgipogi 11 лет назад

The best.

@Yaalah 11 лет назад

How did you figure that out?

@johnlee1546 8 лет назад

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!

@dannyshows 8 лет назад

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.

@johnlee1546 8 лет назад

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?

@kellyi.4353 6 лет назад

How did you know Company X has 2.78 shares?

@TonyPubgMobile 7 лет назад

great

@o0jack28120o 7 лет назад

Guys should I invest in Company X, Y or Z?

@ashkenazi0000 7 лет назад

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.

@vicheakeng6894 Год назад

Bond sold in 2020?

@Zakawaka45 9 лет назад

A house that you live in is not an asset, but otherwise great vid ;)

@jameslam2491 9 лет назад

Zakawaka45 holy shit are you kidding?

@Zakawaka45 9 лет назад

james lam read rich dad poor dad...

@diphMO2 8 лет назад

+Kurt Core An asset is just something that has value. It does not need to generate value.

@Guerilla1337 8 лет назад

+Diph Ling kiyosaki's definition of assets is wrong haha

@Thegoatt84 8 лет назад

I think you're referring to Current assets, yes it's not, but it's considered an asset (other assets).

@arqamkhan633 2 года назад

2;05 rich dad is angry !

@zir786 11 лет назад

What happens to the people when they've bought the shares. How do they get their money back.

@louis9116 2 года назад

did anyone figure out what company is this

@samanthal9181 7 лет назад

lifesaver

@rapper5933 8 лет назад

Sooooo are we going to talk about bonds or..

@katlinmicheal8121 4 года назад

Nice video sir, Stock trading is very much profitable as long your risk to reward ratio is balanced and you stick to an expert trader people lose thinking like a expert trader that's why I entrust MR ROMERO PIETO an expert in advance trading and he also help in managing my funds the right way one thing I know for sure is trading along side a great mindset (pros) and with a good procifient trading system trade is to sure generate profit for me

@horsefallaron9009 4 года назад

That is the best truth speed without direction will end you up in penury in the market so its really advisable to invest with someone who has experience in trading like Mr Romero pieto.

@jenniferwilson9898 4 года назад

indeed he is really good when it comes to trading, me and my family are taking advantage of this opportunity am so so happy investing with him

@beckymilton2029 4 года назад

Well understood teaching sir.

@catharinemarlia6728 4 года назад

Many thanks to Mr Romero pieto for helping me and my family this year by handling our trade making it a lot easier to earn more profit every week

@annabelforlife5102 4 года назад

Katlin Michael Am from Australia 🇦🇺and am also annewbie in the online trading market so please how can I get hold of Mr pieto and his trading services?

@cut3141 6 лет назад

He sounds like vladtv

@thatdopedude7217 6 лет назад

A company is selling 1 share for 10k and they promese 500 a month is it real

@crimsonnite9291 4 года назад

What company

@isaacsante9989 9 лет назад

what exactly is the job of the analyst?

@buk6708 8 лет назад

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.

@asmitamanjrekar800 6 лет назад

Well, Mr. Robert Kiyosaki in his book Rich dad poor dad says that even house is a liability, so is a car...then how come you say its an asset?

@Yaalah 11 лет назад

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.

@deftrascal1626 8 лет назад

6:01 Did he just slip-up and say shit instead of share XD

@bobbieschroder6231 4 года назад

Yes, but he caught it fast and smoothed it over really well. 😄

@charlesharsch7963 Год назад

FINALLY SOMEONE SAYS IT

@feareddynamite7297 8 лет назад

im 12 and I want money

@MJtheFellowActuary 7 лет назад

Then study Actuarial Science ;-)

@billybob-bj3nw 7 лет назад

Get your head on straight, make good decisions, and get a firm understanding of how the world works. Nobody's going to take care of you and cradle you when you move out.

@TQsktkg-jfgnfnggg 6 лет назад

MJ the Student Actuary how about no

@richardzhang3969 6 лет назад

Here's a fact you're in the wrong place -_-

@doesntmatter1973 6 лет назад

why is he in the wrong place?

@ryandoe11 8 лет назад

Im not at all capable of this shit.. people want me to go to college but i know id have to take classes like this, and i hate it so much i dont see the reasoning of doing this when you hate it that much, life is made for much more than this artificial bullshit.

@TheDocbach 8 лет назад

Actually, you can choose to study whatever it is you want and you can choose your own classes for whatever degree you want. College isn't like high school where everything is so tightly structured and they basically pump out robots who know how to do the exact same crap. "Ok, with generals they kind of do that". I have a 4 yr degree and I never took finance class in my life. Maybe that's why I am here in noobs-ville trying to learn the basics XD.Not trying to sway you in to College or anything. It is a ton of debt and a ton of sacrifice for a degree that may or may not land you the job you really want. Im just saying that if you hated finance that much, you could easily choose something else rather than a business degree. You could be a mechanic, a nurse, an IT guy.. ect. ect.

@Gothiqueluv 2 года назад

College is not for everyone. You can make good money getting into a trade. If it's not for you, nothing wrong with that. Go find what is best for YOU.