What exactly is a stock?
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-If you purchase stock in Google, you own a small fraction of Google.
-When you purchase stock, you’re buying a piece of the company.
-People buy stock in order to invest
-Companies sell stock in order to gain revenue (money to build/grow the company)

Example
-A person starts a candy cane company, invests a lot of money, and the company is worth 0,000
-In order for this company to grow larger, it needs more equipment and employees
-The company needs more money to get the equipment and employees
-Instead of going to a bank to borrow the money, stock comes into play
-The candy cane company sells stock (or pieces of the company)
-Other people invest in the company and in turn, own part of the company
-The investors are looking for a financial gain
-If the company doubles its revenue, the investors also double their money (i.e. if one person invested ,000 that initial investment is now worth ,000)
-The investors benefit as the company grows

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Why are there stocks at all?

Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don’t have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl!

Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science.

We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! 🙂

We’re a bunch of Information designers from munich, visit us on facebook or behance to say hi!

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How the Stock Exchange works

Help us caption & translate this video!

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