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

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What it means to buy a company's stock. Created by Sal Khan.
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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).
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Пікірлер: 237

  • @jimettamarna417
    @jimettamarna4174 жыл бұрын

    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

    @vishnupandrangi7160

    4 жыл бұрын

    Thumps up

  • @Ihavetoreturnsomevideotapes

    @Ihavetoreturnsomevideotapes

    2 жыл бұрын

    Omg

  • @santhosh8290

    @santhosh8290

    2 жыл бұрын

    Wowww

  • @froggyfinn09

    @froggyfinn09

    6 ай бұрын

    wait so while you were in school you had kids?

  • @ethanm021

    @ethanm021

    3 ай бұрын

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

  • @enh9952
    @enh99528 жыл бұрын

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

  • @jorgevargastx
    @jorgevargastx4 жыл бұрын

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

  • @blueboystudios

    @blueboystudios

    4 жыл бұрын

    and statistics!

  • @Lancersilva

    @Lancersilva

    3 жыл бұрын

    And geometry

  • @santhosh8290

    @santhosh8290

    2 жыл бұрын

    GMAt gre

  • @JESS-vz5gu

    @JESS-vz5gu

    2 жыл бұрын

    somebody ask this man what the cure to cancer is

  • @yinge101
    @yinge10110 жыл бұрын

    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

    @Gothiqueluv

    2 жыл бұрын

    Ha! Good job! Gold star for you!

  • @oklano_menobi7946

    @oklano_menobi7946

    Жыл бұрын

    gah dayum

  • @rubencrisitano9
    @rubencrisitano96 жыл бұрын

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

  • @hwanlee5978
    @hwanlee59788 жыл бұрын

    Thank you so easy to understand

  • @AhmedBalfaqih
    @AhmedBalfaqih9 жыл бұрын

    Simple yet very useful.

  • @jeroenwaning
    @jeroenwaning10 жыл бұрын

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

  • @odinmp5
    @odinmp510 жыл бұрын

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

  • @ChrisGarrison72
    @ChrisGarrison729 жыл бұрын

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

  • @angel.7.7.7.7
    @angel.7.7.7.77 жыл бұрын

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

  • @sashanastitches
    @sashanastitches10 жыл бұрын

    very clear explanation...thanks much.

  • @brianwarner308
    @brianwarner30810 жыл бұрын

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

  • @alexanderhenderson454
    @alexanderhenderson4545 жыл бұрын

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

  • @jacksonsanders9363
    @jacksonsanders93632 жыл бұрын

    I love you Sal Khan. You are an inspiration.

  • @abhinavitsmebellamy
    @abhinavitsmebellamy4 жыл бұрын

    Thanks. Really well explained!!

  • @evelynflores2439
    @evelynflores24394 жыл бұрын

    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

    @cyberslumz

    4 жыл бұрын

    Let me buy you anything you want 🙊

  • @stevenmarkanthonyharpaul739
    @stevenmarkanthonyharpaul7392 ай бұрын

    Wow I am really happy to know this.

  • @edmondmariga819
    @edmondmariga8195 жыл бұрын

    Wait, this dude tutors Bio too, so well.

  • @williameddy8856
    @williameddy88566 жыл бұрын

    Very helpful thank you

  • @MichaelTaphouse
    @MichaelTaphouse3 жыл бұрын

    Much love and gratitude

  • @genxmarketinggroup7153
    @genxmarketinggroup71534 жыл бұрын

    Great video thank you!

  • @chloelien7556
    @chloelien75566 жыл бұрын

    Almost anything can learn from here :) !!

  • @amiraboodi2075
    @amiraboodi2075 Жыл бұрын

    Thank you very much. Good introduction.

  • @Heshanudugama
    @Heshanudugama6 жыл бұрын

    very clear! thanks

  • @kaunghtetwin3149
    @kaunghtetwin31494 жыл бұрын

    Thanks for your sharing 😍

  • @kaitsakey6495
    @kaitsakey64954 жыл бұрын

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

  • @RanochVTX
    @RanochVTX9 жыл бұрын

    Wow this was so informative. 😳

  • @BangzHomie
    @BangzHomie9 жыл бұрын

    Thanks.

  • @jaykhan6524
    @jaykhan65243 жыл бұрын

    Thanks again Sal. 😊

  • @marc.levinson
    @marc.levinson9 жыл бұрын

    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.

  • @played1994
    @played19948 жыл бұрын

    Thanks for the video

  • @jeffsellers5468
    @jeffsellers54687 жыл бұрын

    Well done!

  • @MrMarkgyuro
    @MrMarkgyuro4 жыл бұрын

    thanks Khan you are the best :)

  • @adnanfaisal5593
    @adnanfaisal55939 жыл бұрын

    THANKS ALOT DEAR

  • @bonkrood4629
    @bonkrood46293 жыл бұрын

    whos here from the GME stuff going on

  • @piguy3945

    @piguy3945

    3 жыл бұрын

    Who isn’t lol

  • @jonahs.757
    @jonahs.757 Жыл бұрын

    This guy is pretty much all knowing.

  • @nickraffone1598
    @nickraffone15988 жыл бұрын

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

  • @feelteamsix3911

    @feelteamsix3911

    8 жыл бұрын

    Nice!

  • @S9V9G3

    @S9V9G3

    8 жыл бұрын

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

  • @nickraffone1598

    @nickraffone1598

    8 жыл бұрын

    Trūë SAvAgE id love too!!!

  • @S9V9G3

    @S9V9G3

    8 жыл бұрын

    so that way we can talk on irc instead of email

  • @MJtheFellowActuary

    @MJtheFellowActuary

    7 жыл бұрын

    Study Actuarial Science to get an extra edge in understanding Stocks

  • @javinfinity7574
    @javinfinity75744 жыл бұрын

    Thankuuu this was so good

  • @JUSTOVERTHINK
    @JUSTOVERTHINK2 жыл бұрын

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

  • @matthewjames7513
    @matthewjames751310 жыл бұрын

    legend, thank you

  • @fleshcookie
    @fleshcookie9 жыл бұрын

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

  • @Thegoatt84

    @Thegoatt84

    7 жыл бұрын

    Watch American Greed*

  • @Gothiqueluv

    @Gothiqueluv

    2 жыл бұрын

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

  • @RahulSharma-ln8kj
    @RahulSharma-ln8kj6 жыл бұрын

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

  • @VeryHighCholesterol
    @VeryHighCholesterol8 жыл бұрын

    Great video

  • @joshualipovetsky2744
    @joshualipovetsky27442 жыл бұрын

    Thank you.

  • @jag831
    @jag8316 жыл бұрын

    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?

  • @tonymarino1730
    @tonymarino17303 жыл бұрын

    What a great video

  • @desibiden3860
    @desibiden38603 жыл бұрын

    Great Video

  • @KoreanAesthetics
    @KoreanAesthetics9 жыл бұрын

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

  • @stanleygqm
    @stanleygqm10 жыл бұрын

    double? An understatement thr my friend...

  • @muskankesharwani3151
    @muskankesharwani31512 жыл бұрын

    Thankyou sir❤️❤️

  • @ioannissakellariou5165
    @ioannissakellariou51655 жыл бұрын

    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?

  • @jorgipogi
    @jorgipogi10 жыл бұрын

    The best.

  • @Yaalah
    @Yaalah10 жыл бұрын

    How did you figure that out?

  • @WillTheVideoMaker
    @WillTheVideoMaker2 жыл бұрын

    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

  • @dobcsek
    @dobcsek6 жыл бұрын

    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?

  • @marcellenel9952
    @marcellenel99529 жыл бұрын

    Is that Balance Sheet from Research in Motion??

  • @elijah24567
    @elijah245678 жыл бұрын

    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
    @papamegamind5 жыл бұрын

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

  • @ryanfranz6715

    @ryanfranz6715

    3 жыл бұрын

    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

    @tony46126

    3 жыл бұрын

    @@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

    @ryanfranz6715

    3 жыл бұрын

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

  • @yaboylucas2371

    @yaboylucas2371

    3 жыл бұрын

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

  • @ryanfranz6715

    @ryanfranz6715

    3 жыл бұрын

    @@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.

  • @TonyPubgMobile
    @TonyPubgMobile6 жыл бұрын

    great

  • @engineering1O1
    @engineering1O13 жыл бұрын

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

  • @jefesaidso
    @jefesaidso9 жыл бұрын

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

  • @mattk5592
    @mattk55927 жыл бұрын

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

  • @jorgipogi
    @jorgipogi10 жыл бұрын

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

  • @justforfun4680
    @justforfun46807 жыл бұрын

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

  • @daniboi1786
    @daniboi17865 жыл бұрын

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

  • @acommunityofhermits
    @acommunityofhermits10 жыл бұрын

    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.

  • @jack3604
    @jack360410 жыл бұрын

    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

    @Gothiqueluv

    2 жыл бұрын

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

  • @leonardopalacio5247
    @leonardopalacio52479 жыл бұрын

    How do they decide how many shares to issue ?

  • @Thegoatt84

    @Thegoatt84

    7 жыл бұрын

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

  • @999locke

    @999locke

    7 жыл бұрын

    as many as they can

  • @jasontheworldisyours
    @jasontheworldisyours7 жыл бұрын

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

  • @ThomasFergus
    @ThomasFergus10 жыл бұрын

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

  • @vicheakeng6894
    @vicheakeng6894 Жыл бұрын

    How do you know many shares?

  • @marq2827
    @marq28277 жыл бұрын

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

  • @k.a.9415

    @k.a.9415

    7 жыл бұрын

    try Robinhood for stock trading

  • @kellyi.4353
    @kellyi.43536 жыл бұрын

    How did you know Company X has 2.78 shares?

  • @Yaalah
    @Yaalah10 жыл бұрын

    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.

  • @samanthal9181
    @samanthal91817 жыл бұрын

    lifesaver

  • @abbasakbar6597
    @abbasakbar65978 жыл бұрын

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

  • @oklano_menobi7946

    @oklano_menobi7946

    Жыл бұрын

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

  • @hectorsaucedo4465
    @hectorsaucedo44658 жыл бұрын

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

  • @andrewcbuensalida

    @andrewcbuensalida

    7 жыл бұрын

    yes

  • @ChannieChauni

    @ChannieChauni

    7 жыл бұрын

    Hector Saucedo no

  • @thenovice4370

    @thenovice4370

    7 жыл бұрын

    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

    @999locke

    7 жыл бұрын

    no no no it means you have 50 shares

  • @shivangisrivastava6401

    @shivangisrivastava6401

    6 жыл бұрын

    Hector Saucedo yep

  • @NELSONG12
    @NELSONG1210 жыл бұрын

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

  • @ninolora3573
    @ninolora35736 жыл бұрын

    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

    @Gothiqueluv

    2 жыл бұрын

    nope

  • @wmarkozalatar3732
    @wmarkozalatar37326 жыл бұрын

    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

    @rjjrdq

    6 жыл бұрын

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

  • @hectorsaucedo4465
    @hectorsaucedo44658 жыл бұрын

    Imaa #share this video lol

  • @tigadirt
    @tigadirt3 ай бұрын

    Okay but how does this help the business?

  • @vicheakeng6894
    @vicheakeng6894 Жыл бұрын

    Bond sold in 2020?

  • @AFirongeneral
    @AFirongeneral9 жыл бұрын

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

  • @Zakawaka45
    @Zakawaka459 жыл бұрын

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

  • @jameslam2491

    @jameslam2491

    9 жыл бұрын

    Zakawaka45 holy shit are you kidding?

  • @Zakawaka45

    @Zakawaka45

    9 жыл бұрын

    james lam read rich dad poor dad...

  • @diphMO2

    @diphMO2

    8 жыл бұрын

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

  • @Guerilla1337

    @Guerilla1337

    8 жыл бұрын

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

  • @Thegoatt84

    @Thegoatt84

    7 жыл бұрын

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

  • @o0jack28120o
    @o0jack28120o6 жыл бұрын

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

  • @johnlee1546
    @johnlee15468 жыл бұрын

    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

    @dannyshows

    8 жыл бұрын

    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

    @johnlee1546

    8 жыл бұрын

    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?

  • @rapper5933
    @rapper59337 жыл бұрын

    Sooooo are we going to talk about bonds or..

  • @zir786
    @zir78610 жыл бұрын

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

  • @cut3141
    @cut31416 жыл бұрын

    He sounds like vladtv

  • @arqamkhan633
    @arqamkhan6332 жыл бұрын

    2;05 rich dad is angry !

  • @isaacsante9989
    @isaacsante99899 жыл бұрын

    what exactly is the job of the analyst?

  • @buk6708

    @buk6708

    8 жыл бұрын

    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.

  • @thatdopedude7217
    @thatdopedude72175 жыл бұрын

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

  • @crimsonnite9291

    @crimsonnite9291

    4 жыл бұрын

    What company

  • @louis9116
    @louis91162 жыл бұрын

    did anyone figure out what company is this

  • @deftrascal1626
    @deftrascal16268 жыл бұрын

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

  • @bobbieschroder6231

    @bobbieschroder6231

    4 жыл бұрын

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

  • @charlesharsch7963

    @charlesharsch7963

    Жыл бұрын

    FINALLY SOMEONE SAYS IT

  • @41Niners
    @41Niners10 жыл бұрын

    umad

  • @BatmanHQYT
    @BatmanHQYT7 жыл бұрын

    Sal's voice has always mildly resembled Obama's to me

  • @TQsktkg-jfgnfnfj

    @TQsktkg-jfgnfnfj

    6 жыл бұрын

    Batman true

  • @ashkenazi0000
    @ashkenazi00006 жыл бұрын

    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.

  • @41Niners
    @41Niners10 жыл бұрын

    talking to people making comments not khan u re