Hi everyone - this is matt from matt strats in this video i'm going to offer a brief overview of the stock market world. I hope to answer your introductory questions and get you started on your stock market journey with the right foot forward. So what is a stock? A stock which can also be referred to as shares or equity signifies ownership in a corporation. In other words, if you own a stock in a company, you are entitled to a proportionate amount of that company's assets and earnings based on how much stock you own stockholders.

Also known as shareholders do not own corporations, they own shares, sold by corporations. Stocks are bought and sold predominantly on stock exchanges, which are marketplaces for the trading of stocks and other financial instruments. The overall market is made up of millions of investors and traders who have differing ideas about the value of a specific stock, and thus the price at which they are willing to buy or sell it. As these investors and traders act on their opinions by buying and or selling a stock, minute-by-minute changes in the value of the stock are prompted throughout the course of a trading day.

A stock exchange provides a platform where such trading can be easily conducted by matching buyers and sellers of stock. Why would a company offer stock in the first place, corporations issue stock to raise funds to operate their businesses? Essentially, they are hoping to use the additional money to increase the overall value of their company if they do manage to increase the value of their company, the value of each share would go up, there's no guarantee that a corporation's value goes up, though, if it were To drop the value of each share would also drop. This means there is inherent risk in owning stock. Numerous studies have shown that over long periods of time, stocks generate a considerable amount of money.

These returns come from two things: capital gains and dividends. A capital gain occurs when you sell a stock at a higher price than the price at which you purchased it. A dividend is a portion of the profits that a company distributes to its shareholders. This means a shareholder is paid for simply owning stock.

In the corporation, i hope this brief overview answers your initial questions about the stock market world, thanks for watching until the end, if you have any questions or comments, leave them below. If you learned anything or enjoyed the video hit, that like button and subscribe and as always may the odds be in your favor.