Hey guys! Do you now understand how the stock price is determined? I hope so. If not, tell me where you're stuck and I'll try to clarify things for you.
Here's a great question I'd love to see some thoughts on, "Priced in." Ok, how? Why can't I find information explaining how news or uncertainty has been priced in? Do a buyer and a seller agree on the "priced in?" A price is never set by just one party, it takes two, does "priced in" mean "ignored." It was priced in they say, ok, how, what happened, where can i see this?
If a company doubles its worth buy developing and selling a new product while all of the shareholders stop selling them, is it possible for the price of the share to increase?
@Chris yes, already considered in the past, or "ignored." I wish people would quit saying "priced in," price is numbers and numbers are a system of measurement. It makes it sound too fancy lol
Hey, can you assist me with a problem I’m facing? I hold USDT TRX20 in my OKX wallet and have the phrase (clean party soccer advance audit clean evil finish tonight involve whip action). How can I transfer it to BitGet or Binance?
This video is perfect for people who don't understand the stock market at all cuz this is literally all that matters with the stock market determine if it's a good price and if so buy. Not complicated once you understand what causes the price changes.
Best video on stock market ever. Before this whole explanation of "future value" and "intrinsic value", I thought stock market was just a gamble but now I understand how the price of a share is really determined.
I'm trying to get my girlfriend started with investing and she gets fed up when I start babbling about philosophy, understanding P/E ratio, understanding revenue, earnings, eps, ROIC, NOPLAT, dividends and so on... This video was very well put together easily and straightforward explained, with good animations!
Davids unique strength in his realistic approach which makes him different from other brokers that often set unattainable targets, and fall short in delivery.
All my life I’ve been interested in the stock market but not understood or had stupid explanations, this is the ONLY video I’ve ever seen that has been useful. Well fucking done mate b
Your presentation and the marketing strategy at the end tells how good you are at commerce and economics. I am glad to see good content from experts like you
Dividend investing is my jam! I'm building wealth with a buy-and-hold strategy in my Roth account, featuring rockstars like Berkshire B stock, SCHD, and S&P 500 and total market ETFs. My taxable account is also getting in on the action, generating regular income through dividend-paying stocks. It's a winning combo that's helping me achieve my financial dreams!
Other videos only talk about demand and supply but never bother to explain how demand and supply increase or decrease. This video has gone an extra mile in explaining the concept of free cash flow and intrensic value which basically is the driving force behind a stock value.
So from what just happened with GME, was the increase in share price due to the surge of buyers and the shorted stocks being settled at the higher price? And then the marketplace restricted public buys on platforms internationally. During this time hedge-funds continued selling between each over really fast on the exchange, stepping down the price gradually as it averaged against incoming public purchases? I’m a noob just interested what caused that particular price to change.
This video finally put everything together for me. I wanted to know how this works so I could simulate it myself, but I could not find a reliable answer anywhere until I found this video. Thank you. :D.
Really clear explanation on stock prices! I am an accounting student and I am currently taking Intermediate Accounting 2 and I just couldn't figure out how stock prices would be accounted for and how much cash is going to be received! Thank you so much!
Hi, your video was recommended by my Principles of Finance class professor. Great video, but I have one suggestion, please remove the background music, it is very distracting. Thank you!
Hey since you do work at a college I'm guessing you possibly know the answer to my question at 3:15 I'm confused on how that answer was figured out that what math equation was used to know that answer or what problem was used to figure that answer out
The best advice I can give is to watch the news. There are psychological influences in the market. Bad news is bad news and good news is good news...typically.
Awesome video.....I would love to hear of some examples where your 'investments' haven't paid off or have fallen through and how you managed it and what you learnt from it. I think that would be really helpful!
Hi Lets say i buy 10 k shares of a company, each worth 10 dollars and are 1 % of the entire company. What happens if the price of the shares go down to lets say 6 dollars each. Am i still getting my 1 % payout from the company profit every year? Another question.. Are the prices for shareholdings completely dependent on how people think the company is gonna perform or is it all about how it actually performs? And lastly can the total amount of shareholdings change in a company and if so does my percentage go down?
Great questions. Yes, if you own 1% of the company and the stock price drops, you still get your 1% payout from the company profits every year. The prices are dependent on both how people think it'll perform and how it actually performs. Their expectations of how it'll perform is usually measured by "Wall Street Consensus" or "Analyst Expectations" in terms of how much Revenue, EBITDA, Net Income, EPS the company will earn in the future. Then when the company actually reports their actual performance, stock price will definitely react. So say the actual performance is below expectations. Usually the price will drop. Likewise, if the actual performance exceeded expectations, stock price will jump. Yes, the total amount of shares outstanding can change in a company. But usually the value of the company changes as well so even though your percentage ownership goes down, the value you own might "theoretically" be the same.
@@Lumovest Who decides the total amount of shares? Do shareholders have no say in the matter? And thanks for a great video, great response. I will def spread the channel around.
@@tomsvensson78 It depends who's making the decisions at the company. If management is running the company, then management will decide the total amount of shares. If the shareholders are running it, then the shareholders will decide. Many public companies at their original incorporation were pretty small and run by their founder / owners. So they were the ones who made the decision.
@Chris - I said buy the dip, not buy the plummet. I am talking about a good stock that dips during the day and when I do that, it almost always comes back up. Sometimes I do this multiple times in the same day using the same stock.
I want to ask one question Share open at 1500 We buy at 1400 We sell at 1700 This way trading is so simple? Or Am I doing mistake, and something is happening behind the scenes
I've been really, really struggling trying to understand exactly why profitability or potential profitability of a company should have any affect on the stock price in the first place. How are the two tied? For example, when everyone pushed to buy Zoom stocks and ended up accidentally buying stocks from the wrong company it essentially had the same effect as though they just bought stocks in Zoom, right? I mean if this was never resolved and the investors still believed they invested in Zoom, I can't see how that's any different to the shareholders (aside from of course the company Zoom itself). It seems rather arbitrary whether or not a company is doing good and only matters on what investors believe other investors will invest in a company which is just circular logic. Everyone could just agree to invest in failing companies and not in successful ones. The way I currently understand it, this should have the same impact on investors...
As mentioned in the video, shareholders may receive a portion of the company's profits. If the company winds up having low profits or outright loses money, then it means investors overpaid.
Wait, what?? You're saying you *don't understand* why a company that is worth $1,000 and has 1,000 shareholders should see it's stock price go up when that company's profits increased and made that company now worth $2,000? If each of those 1,000 shareholders had 1 share of stock which was worth $1, doesn't it logically make sense that when the company's profits made the company now worth $2,000 - each of those 1,000 shares of stock in that company is now worth $2?
Bro your videos are incredible. I want to start trading and your videos are very helpful up to a point . You keep it simple , graphics design awesome, and the voice . Keep going
Hey. Thanks for the video. Nice work. One opinion - I would rather decrease a bit the background music. It is good to have it, but for me it is a bit too much
There is something I am missing here. At the beginning of the video you said that the stock price is the price of the last transaction. This means that if I buy 1 Apple share for 200$ and put a sale order at 5000$ then put a buy order at 5000$, I just put the share to a 5k value. I assume that the amount of shares involved in a transaction, related to the total supply, is taken into account. Otherwise anyone can manipulate the market with a couple thousand bucks.
Correct. Everybody asks this question. First, just because you put in an order to sell the stock at $5,000 doesn't mean there are buyers willing to buy it for $5,000. Why would they want to buy it for $5,000 when they can buy it for $200 from other buyers. Second, the stock exchanges like NYSE and NASDAQ are not stupid. Their algorithm don't let the exchange of a single share dictate massive fluctuations in prices.
Yea, but what if they don't ? U got two buyers only ? Doesn't mean they going to buy at 5k genius .... What if three buyers ? U get $600 ...shit good for me lol
Never understood the price movement because of demand and supply....but your way of explanation is way better than any other videos.... Also the headline price ....dis explanation is an eye opener
Your analysis is very clean and taken right from your econ book, class, MBA program or whatever. It does NOT at ALL take into consideration market makers, banks influence(their manipulation) and even your mutual fund company --- that will work AGAINST you ( yes --- your account --in their FUNDS) to short-- that is done to get the shares OUT OF YOUR HANDS--- they DO know the intrinsic value and they ALSO KNOW --- investors CAN KNOW this also, SO their GOAL is to PUSH the value DOWN SO HARD that your RESEARCH, time and math that DOES equal a GOOD VALUE--- that is YOUR GUIDING LIGHT---- AS YOU BUY at this "so called INTRINSIC VALUE" is NOW FAR above the PRICE the MARKET MAKERS, brokers and BANKS --- ALL got THEIR PRICE-- that is NOW FAR below -- your "INTRINSIC VALUE" PRICE --- you ------ ALREADY BOUGHT AT! This is a CLASSIC "VALUE TRAP" of a different kind( a technical trap). Now THEY have the "REAL discounted INTRINSIC VALUE"--- NOT YOU! TO make it harder on your "FUNDAMENTAL ANALYSIS" they will SELL at a price that is NOT close to your "future based price" ! When they sell--- with their MASSIVE NUMBER of shares -- as MANY banks and brokers HAVE----- your valuable homework of "intrinsic value: will be of LITTLE VALUE -- even OVER TIME - as they SELL-- pushing 'your stock price DOWN--- for a LONG Time!!! Thus TRAPPING you --- AGAIN --- while you WAIT -- LONGER and your ALSO valuable investor measurement of ----- CAGR --- dwindles, as TIME goes by and you wait for that value to come TRUE! In the MEANTIME -- the market makers, banks, brokers , high speed traders ----- they WILL ALL have ROTATED ( VERY IMPORTANT) to another sector that THEY are MAKING their---- CAGR -- NOW! While you --- SIT WAITING--- because--- your MATH has TOLD you --- "you are RIGHT" and you WON'T let GO-- as your stock price NEVER hits the VALUE --- your math has said "you are right", BECAUSE-- ALL the MAJOR PLAYERS who MAKE IT POSSIBLE( IMPORTANT) have --MOVED on and the VOLUME(important) to MOVE your stock price( your MATH-- AGAIN) never gets to, never gets there--- because there is ---- NO volume(enough people WILLING to pay MORE) ---- ARE GONE!! *****IMPORTANT NOTES; 1) Warren Buffet did NOT make the VAST majority of his returns from what you READ or HEARD--- PERIOD!--- He has a LOT of leverage from money he DID ( PAST TENSE-- important!!)make-- MANY years ago --- he is DOING POORLY in the last 5-6 years! ESPECIALLY compared to other BIG, his REAL competitors( important-- not you, me - or even Fidelity!) He has RECENTLY made from just being a bank that charges high interest rates--- period!------ ALL your MATH should be JUST ---- a guideline --- NOT a RULE or staple -- of ANY KIND!! 2)**** I REALLY IMPLORE YOU---- WATCH the DOCUMENTARY----( NOT MOVIE --- ALL FACTUAL!!) ----- "THE MIDAS TOUCH" --- vimeo.com/244903345 -- it is older and OFF the charts good --- you WILL LEARN how MATH can and WILL get you into trouble!! It is ONLY --- 50 minutes LONG!!--- INVESTORS mostly -- refuse to watch it, because they THINK their math is --- the HOLY GRAIL!!! A little preface--- it is about Academics and does lean more toward options trading----- BUT --- it is REALLY, TOTALLY INCLUSIVE of ALL your investment math!! And the academics who thought they were smarter than then REST of WALL street!
This is absolutely phenomenal! I’m pretty good with numbers, but your explanation and examples made it super easy to follow. Thank you so much, I have subscribed.
Lumovest i really liked your video.First one to show up in search actually. I think it is important to upload frequently, use eye catching and interesting thumbnails, and persevere. Maybe your videos didn’t show up in search in the past, but only now TH-cam found it. Financial Education’s TH-cam channel does very well, probably because he gives a reason for viewers to come back. He helps viewers with their problems, makes stock portfolios for them, and shares his viewpoints and opinions which apparently are popular. I’m not saying you should copy him, but maybe try to retain your viewership? I’m new to investment, and I learned that when deciding on an investment, one needs to see first, whether many people use their product, and second, whether people keep coming back and back. I could have improved on this. This is my honest two cents.
Nice stretiigies everaging first high and first low the strick price comes out in a day or weak under controled market index or capitalization ( regarding a share)
S H If you had shares in company X and you believed that the stock price is now overvalued, you would sell, right? If everyone did the same, the S curve would shift to the Right, Increasing supply
But even though the demand has increased due to more people selling (as more people would also be buying), the corresponding quantity demanded to a certain price would also have decreased due to larger supply, hence it would also make sense to move the demand curve to the left right?
Hello, Suppose price of stocks changed due to people's thinking how company is going to perform and not due to how it actually performs...in that case does the capital for company changes? Also how stock price changes because of people's thinking? Can shareholders decides selling or buying price? Please give an example if possible.
Hi Lokesh, If the price of stocks changed due to people's perception of how it's going to believe, the company's Equity Value and Enterprise Value will also change. Equity Value and Enterprise Value are different measures of how much a company is worth. However, the amount of cash a company has in the bank account doesn't change based on stock price. With regards to your second question: people's perception of how a company will perform in the future will certainly affect stock prices. Take the case of Valeant (now known as Bausch). After its stock price dropped from ~$300 to $30, investors started to fear that it can drop from $30 to zero because Valeant has a ton of debt and it might go bankrupt. That fear led investors to sell their stocks, and when there are more people selling stocks than people buying stocks, they start to sell it at lower prices, which drives down the stock price from $30 down to ~$8. However, overtime, it turned out that the fear was overblown. The company started repaying a bunch of debt and now the debt level is clearly manageable. When it became clear that Bausch can actually manage its debt load, the market corrected itself and the $8 went back up to about mid-$20s. Hope this helps!
Does it mean I should start buying the stocks from big tech companies like Apple, Microsoft and etc.? Since their stocks price is low now and is believing to have a growth in the future
Just curious, if a comany share is worth $200 and I only invest $50, did I buy a share or like, a quarter of it? Or is my share worth $50 while someone elses is worth $200 and we make a profit only compared to the value we bought at (so $200 is just our baseline when we bought in with $50)? I understand I'd make more money/lose it if it goes below the initial value of when I bought in, I'm just not sure if you bought shares or part of a share etc. Is there a limit to the amount of shares that can be bought and sold?
You shouldn't think about shares in terms of fractional shares. Fractional shares is still a relatively novel and untested concept introduced by some tech startups. Most brokers don't allow you to buy a fraction of a share. So if a company's stock is $200 per share, you have to invest at least $200.
Bid happens when you buy stocks. For example, when you buy a stock, you may choose to submit a "Market Order" which lets your broker bid for you based on market rates. Alternatively, you may choose to submit a "Limit Order" in which you specify the max price you're willing to pay for this stock. These inputs form "Bid".
This is a great video, I only have one question about when the video stated "when you own a stock you are now a business owner" I was under the impression that you are a owner of 100% of the stocks or equities you own in the company and not an actual owner of the business due to "separation of ownership and control"?
Hey guys! Do you now understand how the stock price is determined? I hope so. If not, tell me where you're stuck and I'll try to clarify things for you.
Have the shares in your company went up after this informative video? Lol
Here's a great question I'd love to see some thoughts on, "Priced in." Ok, how? Why can't I find information explaining how news or uncertainty has been priced in? Do a buyer and a seller agree on the "priced in?" A price is never set by just one party, it takes two, does "priced in" mean "ignored." It was priced in they say, ok, how, what happened, where can i see this?
If a company doubles its worth buy developing and selling a new product while all of the shareholders stop selling them, is it possible for the price of the share to increase?
Unlimited QE by the FED will change everything in anyway.
@Chris yes, already considered in the past, or "ignored." I wish people would quit saying "priced in," price is numbers and numbers are a system of measurement. It makes it sound too fancy lol
This is the only video which actually explained technically that why does the stock price changes & in which direction. Thank you very much Sir!
Hey, can you assist me with a problem I’m facing? I hold USDT TRX20 in my OKX wallet and have the phrase (clean party soccer advance audit clean evil finish tonight involve whip action). How can I transfer it to BitGet or Binance?
Really clear explanation about how stock price changes. i have seen around 50+ videos on the same topic, but this is worth watching it.
Thanks for the kind words!
It has a lot to do with people who don't really fully understand what they are talking about lmao
Exactly
Impressive.
This video is perfect for people who don't understand the stock market at all cuz this is literally all that matters with the stock market determine if it's a good price and if so buy. Not complicated once you understand what causes the price changes.
Best Videos on Stock Market i ever watched...thanks from India, lotsa love !!
Thanks for the support!!
Best video on stock market ever.
Before this whole explanation of "future value" and "intrinsic value", I thought stock market was just a gamble but now I understand how the price of a share is really determined.
I'm trying to get my girlfriend started with investing and she gets fed up when I start babbling about philosophy, understanding P/E ratio, understanding revenue, earnings, eps, ROIC, NOPLAT, dividends and so on... This video was very well put together easily and straightforward explained, with good animations!
And very helpful for her!
@@charlesludwig9321 he clearly answered yes :P
Charles Ludwig she's 16
Change your girlfriend
Hello, i wish to start investing but i don't know where to begin. Any advice or contact for help?
Good Move. As a beginner, it's essential and advised for you to have a guardian to keep you accountable. i'm guided by David Robert Michael
What a coincidence! Meeting David Robert Michael changed my life. i was struggling to make rent now i'm looking at houses to buy.
Davids unique strength in his realistic approach which makes him different from other brokers that often set unattainable targets, and fall short in delivery.
Yes, David Michael Roberts Smith Harris Johnson is the one for you. Don't let these bots fool you.
😂
All my life I’ve been interested in the stock market but not understood or had stupid explanations, this is the ONLY video I’ve ever seen that has been useful. Well fucking done mate b
Your presentation and the marketing strategy at the end tells how good you are at commerce and economics. I am glad to see good content from experts like you
Haha and your supportive words tell how kind you are. Thank you :)
Recommendation: Add subtitles for beginners to better understand along the way :)
Ya
Dividend investing is my jam! I'm building wealth with a buy-and-hold strategy in my Roth account, featuring rockstars like Berkshire B stock, SCHD, and S&P 500 and total market ETFs. My taxable account is also getting in on the action, generating regular income through dividend-paying stocks. It's a winning combo that's helping me achieve my financial dreams!
Clearest video of all times ! Many Thx
Other videos only talk about demand and supply but never bother to explain how demand and supply increase or decrease. This video has gone an extra mile in explaining the concept of free cash flow and intrensic value which basically is the driving force behind a stock value.
So from what just happened with GME, was the increase in share price due to the surge of buyers and the shorted stocks being settled at the higher price? And then the marketplace restricted public buys on platforms internationally. During this time hedge-funds continued selling between each over really fast on the exchange, stepping down the price gradually as it averaged against incoming public purchases? I’m a noob just interested what caused that particular price to change.
Easily the best explanation I have seen.
This video finally put everything together for me. I wanted to know how this works so I could simulate it myself, but I could not find a reliable answer anywhere until I found this video. Thank you. :D.
This was done beautifully. I made the exact same Google search, thankfully i found this video!
Seriously, you guys are the best of the best
I appreciate your conceptual clarity..!
Hey Mayur, thanks for watching!
Really clear explanation on stock prices! I am an accounting student and I am currently taking Intermediate Accounting 2 and I just couldn't figure out how stock prices would be accounted for and how much cash is going to be received! Thank you so much!
This is so intuitively presented. I would highly recommend this video to anyone new to investments.
Hi, your video was recommended by my Principles of Finance class professor. Great video, but I have one suggestion, please remove the background music, it is very distracting. Thank you!
Hey since you do work at a college I'm guessing you possibly know the answer to my question at 3:15 I'm confused on how that answer was figured out that what math equation was used to know that answer or what problem was used to figure that answer out
The best advice I can give is to watch the news. There are psychological influences in the market. Bad news is bad news and good news is good news...typically.
Awesome video.....I would love to hear of some examples where your 'investments' haven't paid off or have fallen through and how you managed it and what you learnt from it. I think that would be really helpful!
No other channel explained intrinsic value the way you did. Really worth watching it.
Hi
Lets say i buy 10 k shares of a company, each worth 10 dollars and are 1 % of the entire company.
What happens if the price of the shares go down to lets say 6 dollars each.
Am i still getting my 1 % payout from the company profit every year?
Another question..
Are the prices for shareholdings completely dependent on how people think the company is gonna perform or is it all about how it actually performs?
And lastly can the total amount of shareholdings change in a company and if so does my percentage go down?
Great questions.
Yes, if you own 1% of the company and the stock price drops, you still get your 1% payout from the company profits every year.
The prices are dependent on both how people think it'll perform and how it actually performs. Their expectations of how it'll perform is usually measured by "Wall Street Consensus" or "Analyst Expectations" in terms of how much Revenue, EBITDA, Net Income, EPS the company will earn in the future. Then when the company actually reports their actual performance, stock price will definitely react. So say the actual performance is below expectations. Usually the price will drop. Likewise, if the actual performance exceeded expectations, stock price will jump.
Yes, the total amount of shares outstanding can change in a company. But usually the value of the company changes as well so even though your percentage ownership goes down, the value you own might "theoretically" be the same.
@@Lumovest Who decides the total amount of shares? Do shareholders have no say in the matter?
And thanks for a great video, great response. I will def spread the channel around.
@@tomsvensson78 It depends who's making the decisions at the company. If management is running the company, then management will decide the total amount of shares. If the shareholders are running it, then the shareholders will decide. Many public companies at their original incorporation were pretty small and run by their founder / owners. So they were the ones who made the decision.
Stop the music,difficult to concentrate
video starts at 0:45
wished i saw this 45 seconds ago
Thankyou for such a great knowledgeable talk about stock market.
Support from generous fans like yourself make this possible!
Many traders don't care about intrinsic value and other company metrics. They just buy the dip and sell a few dollars higher. Simple and effective.
David James only when you play short with no long plays
@NerdyJock - "play short" - is basically the definition of trader (vs. investor).
@Chris - I said buy the dip, not buy the plummet. I am talking about a good stock that dips during the day and when I do that, it almost always comes back up. Sometimes I do this multiple times in the same day using the same stock.
Been on tons of workshop, i didn't know i could gotten all off cash flow explanation for free in lumovest :( please keep making this video
One of the best videos I've watched on stocks
wow, this video by far is the best explaining stock price
Thanks Kenny!
Any book recommendations for beginners to further concepts learned in the video ?
Here you go: www.lumovest.com/reading-list/
I want to ask one question
Share open at 1500
We buy at 1400
We sell at 1700
This way trading is so simple? Or Am I doing mistake, and something is happening behind the scenes
Or the shares could never hit 1700 or even 1400 ever again and you lose money.
@@hohohaha-l9l Haha , that day I was lucky.. i now Know the answer
I appreciate your effort....
Thanks for the video....
Love from Nepal....
Thank you Pratik!
Welcome.....
May you gain enough views and subscribers...... Keep moving.... Hard work pays.....
Unlimited QE by the FED will change everything in anyway.
Hi, I just watched your channel and subscribed. Please keep up your good works. Thanks
Hey would you please tell ,how much should I assume a growth rate of explicit for cast period, aka continuing value ,thanks
Stop with the music.. it's difficult to concentrate
Yeah that's supposed to be correct.. But for some reason the music is making me more relaxed 😅
I don't think it's the music... it's you
Kevin P Lol exactly
It didnt bother me before i rode this lol i didnt even realize there was music now it does tho
Most definitely lol if it was soft slow jazz lol but it’s to Up’y Up’y nd fast
Great content. What about the effects of short selling and price.
Thanks for this simplified explanation.
WHY IS THIS AND TAXES NOT TAUGHT IN SCHOOL?!? This is much more useful than English literature, theatre, or chemistry for average Americans
finally what im searching for
I've been really, really struggling trying to understand exactly why profitability or potential profitability of a company should have any affect on the stock price in the first place. How are the two tied? For example, when everyone pushed to buy Zoom stocks and ended up accidentally buying stocks from the wrong company it essentially had the same effect as though they just bought stocks in Zoom, right? I mean if this was never resolved and the investors still believed they invested in Zoom, I can't see how that's any different to the shareholders (aside from of course the company Zoom itself).
It seems rather arbitrary whether or not a company is doing good and only matters on what investors believe other investors will invest in a company which is just circular logic. Everyone could just agree to invest in failing companies and not in successful ones. The way I currently understand it, this should have the same impact on investors...
As mentioned in the video, shareholders may receive a portion of the company's profits. If the company winds up having low profits or outright loses money, then it means investors overpaid.
Because that is the reason you want to own a company? Look at buying stock as if you would buy the company.
Wait, what?? You're saying you *don't understand* why a company that is worth $1,000 and has 1,000 shareholders should see it's stock price go up when that company's profits increased and made that company now worth $2,000? If each of those 1,000 shareholders had 1 share of stock which was worth $1, doesn't it logically make sense that when the company's profits made the company now worth $2,000 - each of those 1,000 shares of stock in that company is now worth $2?
Great explanation, may i know what software do you use for the video?
I THANK YOU SO MUCH!!, THAT'S WHAT I'VE BEEN SEARCHING FOR A LONG TIME
masha Allah, awesome explanation,.. .........
So, when the stock price is closed? Its daily or every next year?
Daily
@@Lumovest so, when u said profit this year.. what its mean? So, thats mean thats broker buy stock in the morning n sell in the evening..
I learned a lot. Thanks for simplifying everything.
So i have a question. When you initially buy a stock, are you buying from the company or buying from someone else who already owns a stock?
Reach out to a professional to guide you with more detailed information on how to earn profitably
His on whats👇👇
+1 9 1 6 2 4 9 8 5 6 8.
This gotta be the new youtube financial GOAT. Very clear explanation sir 👍🏻
Bro your videos are incredible. I want to start trading and your videos are very helpful up to a point . You keep it simple , graphics design awesome, and the voice . Keep going
Thanks so much!!
Thx man for explain how stock market determine and also fluctuates !!
Hey. Thanks for the video. Nice work.
One opinion - I would rather decrease a bit the background music. It is good to have it, but for me it is a bit too much
Hi Dani, that's helpful feedback. Yes, we'll reduce the background music in future videos.
There is something I am missing here. At the beginning of the video you said that the stock price is the price of the last transaction. This means that if I buy 1 Apple share for 200$ and put a sale order at 5000$ then put a buy order at 5000$, I just put the share to a 5k value. I assume that the amount of shares involved in a transaction, related to the total supply, is taken into account. Otherwise anyone can manipulate the market with a couple thousand bucks.
Correct. Everybody asks this question. First, just because you put in an order to sell the stock at $5,000 doesn't mean there are buyers willing to buy it for $5,000. Why would they want to buy it for $5,000 when they can buy it for $200 from other buyers. Second, the stock exchanges like NYSE and NASDAQ are not stupid. Their algorithm don't let the exchange of a single share dictate massive fluctuations in prices.
Yea, but what if they don't ? U got two buyers only ? Doesn't mean they going to buy at 5k genius ....
What if three buyers ? U get $600 ...shit good for me lol
Never understood the price movement because of demand and supply....but your way of explanation is way better than any other videos....
Also the headline price ....dis explanation is an eye opener
Clear Explanation❤️. I think this is the undervalued You tube channel on stock market. I wish this channel gets more subscribers in the future.
Wow very clear and precise
Your analysis is very clean and taken right from your econ book, class, MBA program or whatever. It does NOT at ALL take into consideration market makers, banks influence(their manipulation) and even your mutual fund company --- that will work AGAINST you ( yes --- your account --in their FUNDS) to short-- that is done to get the shares OUT OF YOUR HANDS--- they DO know the intrinsic value and they ALSO KNOW --- investors CAN KNOW this also, SO their GOAL is to PUSH the value DOWN SO HARD that your RESEARCH, time and math that DOES equal a GOOD VALUE--- that is YOUR GUIDING LIGHT---- AS YOU BUY at this "so called INTRINSIC VALUE" is NOW FAR above the PRICE the MARKET MAKERS, brokers and BANKS --- ALL got THEIR PRICE-- that is NOW FAR below -- your "INTRINSIC VALUE" PRICE --- you ------ ALREADY BOUGHT AT! This is a CLASSIC "VALUE TRAP" of a different kind( a technical trap). Now THEY have the "REAL discounted INTRINSIC VALUE"--- NOT YOU!
TO make it harder on your "FUNDAMENTAL ANALYSIS" they will SELL at a price that is NOT close to your "future based price" ! When they sell--- with their MASSIVE NUMBER of shares -- as MANY banks and brokers HAVE----- your valuable homework of "intrinsic value: will be of LITTLE VALUE -- even OVER TIME - as they SELL-- pushing 'your stock price DOWN--- for a LONG Time!!!
Thus TRAPPING you --- AGAIN --- while you WAIT -- LONGER and your ALSO valuable investor measurement of ----- CAGR --- dwindles, as TIME goes by and you wait for that value to come TRUE!
In the MEANTIME -- the market makers, banks, brokers , high speed traders ----- they WILL ALL have ROTATED ( VERY IMPORTANT) to another sector that THEY are MAKING their---- CAGR -- NOW!
While you --- SIT WAITING--- because--- your MATH has TOLD you --- "you are RIGHT" and you WON'T let GO-- as your stock price NEVER hits the VALUE --- your math has said "you are right",
BECAUSE-- ALL the MAJOR PLAYERS who MAKE IT POSSIBLE( IMPORTANT) have --MOVED on and the VOLUME(important) to MOVE your stock price( your MATH-- AGAIN) never gets to, never gets there--- because there is ---- NO volume(enough people WILLING to pay MORE) ---- ARE GONE!!
*****IMPORTANT NOTES;
1) Warren Buffet did NOT make the VAST majority of his returns from what you READ or HEARD--- PERIOD!--- He has a LOT of leverage from money he DID ( PAST TENSE-- important!!)make-- MANY years ago --- he is DOING POORLY in the last 5-6 years! ESPECIALLY compared to other BIG, his REAL competitors( important-- not you, me - or even Fidelity!) He has RECENTLY made from just being a bank that charges high interest rates--- period!------ ALL your MATH should be JUST ---- a guideline --- NOT a RULE or staple -- of ANY KIND!!
2)**** I REALLY IMPLORE YOU---- WATCH the DOCUMENTARY----( NOT MOVIE --- ALL FACTUAL!!) ----- "THE MIDAS TOUCH" --- vimeo.com/244903345 -- it is older and OFF the charts good --- you WILL LEARN how MATH can and WILL get you into trouble!! It is ONLY --- 50 minutes LONG!!--- INVESTORS mostly -- refuse to watch it, because they THINK their math is --- the HOLY GRAIL!!!
A little preface--- it is about Academics and does lean more toward options trading----- BUT --- it is REALLY, TOTALLY INCLUSIVE of ALL your investment math!! And the academics who thought they were smarter than then REST of WALL street!
Simple and easy to understand the basic concept but very important.
I nvr comment on youtube videos.. Ur video was engaging and crisp.. Kp up the good wrk
This is absolutely phenomenal! I’m pretty good with numbers, but your explanation and examples made it super easy to follow. Thank you so much, I have subscribed.
Absolutely loved this video
How isn’t your channel growing
Beats me really. We're new though and we'd grow a lot faster if viewers share our videos with their friends through social media!
Lumovest i really liked your video.First one to show up in search actually. I think it is important to upload frequently, use eye catching and interesting thumbnails, and persevere. Maybe your videos didn’t show up in search in the past, but only now TH-cam found it.
Financial Education’s TH-cam channel does very well, probably because he gives a reason for viewers to come back. He helps viewers with their problems, makes stock portfolios for them, and shares his viewpoints and opinions which apparently are popular. I’m not saying you should copy him, but maybe try to retain your viewership?
I’m new to investment, and I learned that when deciding on an investment, one needs to see first, whether many people use their product, and second, whether people keep coming back and back. I could have improved on this. This is my honest two cents.
Sam you are bobo
The reason is ,that we all cant be millionaires.
Normal people watch netflix and sport their fabulous lifestyle on social media. They dont get rich on this nonsense.
Nice stretiigies everaging first high and first low the strick price comes out in a day or weak under controled market index or capitalization ( regarding a share)
8:34 It’s the S curve that should move to the right, reflecting more sellers. That in turn will drive the prices down. All in all, great video.
Supply is not increasing, the demand is decreasing because of fear (selling)
S H If you had shares in company X and you believed that the stock price is now overvalued, you would sell, right? If everyone did the same, the S curve would shift to the Right, Increasing supply
Yes that makes sense to shift the supple curve right
Because everyone is rushing to dump their shares, thus increasing supply
But even though the demand has increased due to more people selling (as more people would also be buying), the corresponding quantity demanded to a certain price would also have decreased due to larger supply, hence it would also make sense to move the demand curve to the left right?
Informative video! Where is part 2?
Excellent video on stock market and financial education
4:24
There it is! As easy as it can be explained. Thanks
this video is well explained . 👍
Thank you :) Check out our website for more content!
Best video I have seen in recent times , great work !!
i definitely recommend this video to my friends🤗. Awesome.
Hello, Suppose price of stocks changed due to people's thinking how company is going to perform and not due to how it actually performs...in that case does the capital for company changes?
Also how stock price changes because of people's thinking? Can shareholders decides selling or buying price? Please give an example if possible.
Hi Lokesh,
If the price of stocks changed due to people's perception of how it's going to believe, the company's Equity Value and Enterprise Value will also change. Equity Value and Enterprise Value are different measures of how much a company is worth. However, the amount of cash a company has in the bank account doesn't change based on stock price.
With regards to your second question: people's perception of how a company will perform in the future will certainly affect stock prices. Take the case of Valeant (now known as Bausch). After its stock price dropped from ~$300 to $30, investors started to fear that it can drop from $30 to zero because Valeant has a ton of debt and it might go bankrupt. That fear led investors to sell their stocks, and when there are more people selling stocks than people buying stocks, they start to sell it at lower prices, which drives down the stock price from $30 down to ~$8. However, overtime, it turned out that the fear was overblown. The company started repaying a bunch of debt and now the debt level is clearly manageable. When it became clear that Bausch can actually manage its debt load, the market corrected itself and the $8 went back up to about mid-$20s.
Hope this helps!
@@Lumovest Thank you.
Amazing explanation 👏👏👏👏👏👏
Does it mean I should start buying the stocks from big tech companies like Apple, Microsoft and etc.? Since their stocks price is low now and is believing to have a growth in the future
New subscriber 🙋🏽♂️ here to help on your road to 1000 nice channel keep it up !
Haha thanks man. Welcome to the club!
This video is gem.
It's weird this is my first time seeing this video. Can someone point me to the part 2 ?
Made-easy.... looking for more.
More will be coming! And there are also hundreds of videos on our Lumovest website :)
Loved the video, very informative, very clear but I didn't like the music at all, it made it hard to concentrate
PLZ do one video explaining why stock buybacks are bad...
We'll add that to our list of ideas. Thanks Simone!
Outstanding bro👍👍👍👍
You should upload more videos,you are great
Sir where is part 2 of this video? Please share link
Just curious, if a comany share is worth $200 and I only invest $50, did I buy a share or like, a quarter of it? Or is my share worth $50 while someone elses is worth $200 and we make a profit only compared to the value we bought at (so $200 is just our baseline when we bought in with $50)? I understand I'd make more money/lose it if it goes below the initial value of when I bought in, I'm just not sure if you bought shares or part of a share etc. Is there a limit to the amount of shares that can be bought and sold?
You shouldn't think about shares in terms of fractional shares. Fractional shares is still a relatively novel and untested concept introduced by some tech startups. Most brokers don't allow you to buy a fraction of a share. So if a company's stock is $200 per share, you have to invest at least $200.
Greatest video. Thank you
Thanks Ana :)
Are these investors that are public share holders or are they insiders and is this calculated by the market movers and the end of day.? Thank you
Yeaa
I’m kind of confused. Do you buy stocks to sell them later. Or how this work 😩😩😩
You earn dividends evey year you don't need to ever sell.
How do you find how much money they are willing to give in the future?? Also how do you find the amount of shares they have??
Extremely helpful, new subscriber for the long haul 🙂
I'm glad Steph :)
Watching this in 2021. Just to get your algorithm back for your channel
Haha super thankful!
What a logical explanation😎,superb
Thanks man!
but the question that i really want to ask is how exactly the bid happens?
Bid happens when you buy stocks. For example, when you buy a stock, you may choose to submit a "Market Order" which lets your broker bid for you based on market rates. Alternatively, you may choose to submit a "Limit Order" in which you specify the max price you're willing to pay for this stock. These inputs form "Bid".
Great information... superb video... 👌👌
I have a question : How often do we calculate and update the intrinsic value of the stock in a year ????
liked the way you explained it all I such a simple way!
This is great. Thanks!
How does the free cash flow of the company affect the price of stock if at all?
Well explained bro! Keep it up!
Thanks for the kind words!
This is a great video, I only have one question about when the video stated "when you own a stock you are now a business owner" I was under the impression that you are a owner of 100% of the stocks or equities you own in the company and not an actual owner of the business due to "separation of ownership and control"?
I believe they mean you have a VOICE in the company, you do not own the company
Very underrated video