How does the stock market work? - Oliver Elfenbaum

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41 thoughts on “How does the stock market work? – Oliver Elfenbaum”

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  • Aidan Mulligan says:

    Someone please help me out on this. If the IPO is where the company raises their capital through pre IPO investors, why do they care what happens to the stock after it goes public? The investors care and the Joe Smith Etrader care because they have money in the stock, but the company already has the money from the initial investor. All the money traded after going public is just transferring from one investor to the next, not to the company itself right?

    Basically if I was CEO and I raised a whole lot of money in return for shares through the first rounds before the IPO and then IPO went public, wouldn't it not matter to me because the money is already in my bank account?

  • It's a shame how surprising/educational this simple explanation is to many of the commenters. It's a reflection on our educational system which focuses on many of the wrong things.

  • who are the commenters here: 's friends? fake accounts made by TED-Ed? so much praise and no criticism makes them sound suspicious! (glad there is a 252 thumbs-down count there though!)

  • Just want to know if toss coin is really a fair game.

    Recently here in Philippines we held a election and if two candidates resulted a tie they must perform a toss coin to see who's winner.

  • Alberto Klocker says:

    The stock market is run by big companies running programs that trade and sell billions faster than anyone ever could manually. Forget trying to predict it, invest in something tangible – not a perception slot machine.

  • andy klompenburg says:

    that makes sense until you have a prezident that tweets daily on his toilet that we are close to a deal with china then the next day says we are not and imposes tariffs. I can only surmise the BILLIONS of dollars his friends and family pocket during this klusterfuk administration that are only out for themselves…

  • The stock market is more closer to physics than actual using any fundamentals. If you do it right you can easily make 5% to 20% return in a few minutes. I just did it over this weekend. Of course only a fifth of my cash was in the trade and made out with %6 return in an hour

  • Sunken Visions says:

    The market allows the wealthy to determine which businesses succeed. Everything is designed to service them, which is why your jobs and the products you buy are shallow, harmful and ultimately bad for most of society. Where do you think the money comes from in the first place? If people weren't able to hoard such wealth, businesses wouldn't need huge loans in the first place. Why should we allow investors to determine if a company is going to work or not anyway? They aren't building and running the companies, how could they possible know more than the founders? If they're so knowledgeable, why don't investors start their own businesses? Because if the business fails, the owners end up with the debt, and the wealthy investors can dump their worthless stocks on 'everyday investors'.

    The stock market is a terrible system and needs to be reformed.

  • Sunken Visions says:

    The market allows the wealthy to determine which businesses succeed. Everything is designed to service them, which is why your jobs and the products you buy are shallow, harmful and ultimately bad for most of society. Where do you think the money comes from in the first place? If people weren't able to hoard such wealth, businesses wouldn't need huge loans in the first place. Why should we allow investors to determine if a company is going to work or not anyway? They aren't building and running the companies, how could they possible know more than the founders? If they're so knowledgeable, why don't investors start their own businesses? Because if the business fails, the owners end up with the debt, and the wealthy investors can dump their worthless stocks on 'everyday investors'.

    The stock market is a terrible system and needs to be reformed.

  • The supply and demand seesaw seems simple, but what happens when stocks are way over-valued due to central banks printing money and buying stocks to keep the market from collapsing due to all the retiring baby boomers whose retirement accounts are starting to withdraw money out of the stock market? Millenials can't buy the stocks cuz they're way overvalued by the paper money. Baby boomers aren't buying stocks, they're getting out of the market to fund their retirement. Seems like there's no demand, but the stock prices keep rising? Ready for the bubble to burst?

  • Sahil Mambilly says:

    But who maintains the record of values of each company…
    I've seen company values being updated every second on NEWs channels .. who even does that, and how?

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