How is the Stock Price Determined? | Stock Market for Beginners (Part 1) | Lumovest

  Рет қаралды 1,065,861

Lumovest

Lumovest

Күн бұрын

Пікірлер: 771
@Lumovest
@Lumovest 6 жыл бұрын
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.
@triestodrum2215
@triestodrum2215 5 жыл бұрын
Have the shares in your company went up after this informative video? Lol
@dandagerman6604
@dandagerman6604 5 жыл бұрын
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?
@danilocmsm
@danilocmsm 5 жыл бұрын
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?
@jackcheung4301
@jackcheung4301 4 жыл бұрын
Unlimited QE by the FED will change everything in anyway.
@dandagerman6604
@dandagerman6604 4 жыл бұрын
@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
@AnishStocks
@AnishStocks Жыл бұрын
This is the only video which actually explained technically that why does the stock price changes & in which direction. Thank you very much Sir!
@DarylKarabin
@DarylKarabin 27 күн бұрын
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?
@vmkkannan
@vmkkannan 5 жыл бұрын
Really clear explanation about how stock price changes. i have seen around 50+ videos on the same topic, but this is worth watching it.
@Lumovest
@Lumovest 5 жыл бұрын
Thanks for the kind words!
@define7433
@define7433 4 жыл бұрын
It has a lot to do with people who don't really fully understand what they are talking about lmao
@mansisrivastava0001
@mansisrivastava0001 4 жыл бұрын
Exactly
@ericm9305
@ericm9305 3 жыл бұрын
Impressive.
@jack-gf6jw
@jack-gf6jw 3 жыл бұрын
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.
@tracysky7972
@tracysky7972 5 ай бұрын
Hello, i wish to start investing but i don't know where to begin. Any advice or contact for help?
@annarichards2297
@annarichards2297 5 ай бұрын
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
@samiel1842
@samiel1842 5 ай бұрын
What a coincidence! Meeting David Robert Michael changed my life. i was struggling to make rent now i'm looking at houses to buy.
@annarichards2297
@annarichards2297 5 ай бұрын
Davids unique strength in his realistic approach which makes him different from other brokers that often set unattainable targets, and fall short in delivery.
@TheSmokedIrises
@TheSmokedIrises 5 ай бұрын
Yes, David Michael Roberts Smith Harris Johnson is the one for you. Don't let these bots fool you.
@metris5402
@metris5402 29 күн бұрын
⁠😂
@mathiasbrekkan4826
@mathiasbrekkan4826 4 жыл бұрын
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!
@mathiasbrekkan4826
@mathiasbrekkan4826 4 жыл бұрын
And very helpful for her!
@Chris-ci8vs
@Chris-ci8vs 4 жыл бұрын
@@charlesludwig9321 he clearly answered yes :P
@mathiasbrekkan4826
@mathiasbrekkan4826 4 жыл бұрын
Charles Ludwig she's 16
@karinajabonska4436
@karinajabonska4436 4 жыл бұрын
Change your girlfriend
@utilityunified8114
@utilityunified8114 5 жыл бұрын
Best Videos on Stock Market i ever watched...thanks from India, lotsa love !!
@Lumovest
@Lumovest 5 жыл бұрын
Thanks for the support!!
@johnyhawkahsan
@johnyhawkahsan 4 жыл бұрын
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.
@saksha86
@saksha86 5 ай бұрын
Stop the music,difficult to concentrate
@ZA-sy7dn
@ZA-sy7dn 5 жыл бұрын
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
@kesharwanihimanshu84
@kesharwanihimanshu84 4 жыл бұрын
Hey would you please tell ,how much should I assume a growth rate of explicit for cast period, aka continuing value ,thanks
@AnandJayarajan
@AnandJayarajan 3 жыл бұрын
video starts at 0:45
@117_sins7
@117_sins7 2 ай бұрын
wished i saw this 45 seconds ago
@bardacha100
@bardacha100 Жыл бұрын
Clearest video of all times ! Many Thx
@gauravladha5465
@gauravladha5465 4 жыл бұрын
Stop with the music.. it's difficult to concentrate
@bryanlife3311
@bryanlife3311 4 жыл бұрын
Yeah that's supposed to be correct.. But for some reason the music is making me more relaxed 😅
@kevinp113
@kevinp113 4 жыл бұрын
I don't think it's the music... it's you
@steph2cool7
@steph2cool7 4 жыл бұрын
Kevin P Lol exactly
@User-je7gf
@User-je7gf 4 жыл бұрын
It didnt bother me before i rode this lol i didnt even realize there was music now it does tho
@manellis4126
@manellis4126 4 ай бұрын
Most definitely lol if it was soft slow jazz lol but it’s to Up’y Up’y nd fast
@lamemeshitface
@lamemeshitface 4 жыл бұрын
Recommendation: Add subtitles for beginners to better understand along the way :)
@bringeshchowdavarapu7872
@bringeshchowdavarapu7872 4 жыл бұрын
Ya
@tomsvensson78
@tomsvensson78 5 жыл бұрын
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?
@Lumovest
@Lumovest 5 жыл бұрын
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.
@tomsvensson78
@tomsvensson78 5 жыл бұрын
@@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.
@Lumovest
@Lumovest 5 жыл бұрын
@@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.
@arnabhai3629
@arnabhai3629 4 жыл бұрын
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
@Lumovest
@Lumovest 4 жыл бұрын
Haha and your supportive words tell how kind you are. Thank you :)
@billy.n2813
@billy.n2813 4 жыл бұрын
Any book recommendations for beginners to further concepts learned in the video ?
@Lumovest
@Lumovest 4 жыл бұрын
Here you go: www.lumovest.com/reading-list/
@mojoja99
@mojoja99 3 жыл бұрын
Can somebody PLEASE answer this question: if an order was to execute at a ridiculous price, say I bought and then sold a TSLA share for 1 dollar, would it cause the reflected market price of TSLA to dramatically drop on the exchange?
@Lumovest
@Lumovest 3 жыл бұрын
Everybody asks this question. You should try it in your broker account and see what happens. Tesla stock is at $785. If you put in $1, it simply won't get executed.
@mojoja99
@mojoja99 3 жыл бұрын
Why though? Could I not sell my share of TSLA for 1 dollar and have somebody on the other end purchase it for 1 dollar, thus making TSLA 1 dollar? What's restricting that exactly?
@mojoja99
@mojoja99 3 жыл бұрын
@@Lumovest Thank you so much for replying!
@virenmali991
@virenmali991 4 жыл бұрын
Sir where is part 2 of this video? Please share link
@firdaushbhadha2597
@firdaushbhadha2597 4 жыл бұрын
Easily the best explanation I have seen.
@Lukazzz06
@Lukazzz06 4 жыл бұрын
What's the song's name playing from 3:10?
@AkshayVasandani
@AkshayVasandani 4 жыл бұрын
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.
@IndefiniteMark
@IndefiniteMark 4 жыл бұрын
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.
@jfbskkkd12
@jfbskkkd12 5 жыл бұрын
How do you calculate cumulative free cash flow
@Stellagang
@Stellagang 3 жыл бұрын
I'm still confused on whats intrinsic value relative to future value
@yorumnachung
@yorumnachung 4 жыл бұрын
whats the supplier in the free cash flow animation. isnt the company itself a supplier ?
@mayurwalvekar
@mayurwalvekar 6 жыл бұрын
I appreciate your conceptual clarity..!
@Lumovest
@Lumovest 6 жыл бұрын
Hey Mayur, thanks for watching!
@septiadhiwirawan6783
@septiadhiwirawan6783 3 жыл бұрын
then how is the stock owner get profit other then sell their stock, if i decided to invest it for a long term, can i get benefit from the fcf that so little if i buy only little stock??
@toanduongmanh8069
@toanduongmanh8069 3 жыл бұрын
Seriously, you guys are the best of the best
@FreethinkingSecularist
@FreethinkingSecularist 3 жыл бұрын
Please someone answer this, because the video did not. I put a buy order in for 100 shares with a buy stop let's say 5 bucks on a stock that was sitting at 4.98 and the stock price like you stated shows that the last sale moved the needle above 5 bucks to 5.02. Where does the new price come from if there are only two other people who put in a limit sell of 100 shares, one at 4.99 and the other at 5.01? My brokerage says that all my limits and stops are not actual asks or bids but market orders and I only get the cheapest still available does lowest price someone is willing to sell at get the new price spot every time. Will it now move to 4.99? At one moment the next sale moved above all our points of entry and exit. The seller who wants 5.01 put his order in a month ago and the seller 4.99 put his in hour ago. Do I have to pay 5.01 or 4.99 a share please explain? Thanks a bunch. Maybe I thought my way through this as I worked out the question. Lol
@Adrian-cn5rk
@Adrian-cn5rk Жыл бұрын
This was done beautifully. I made the exact same Google search, thankfully i found this video!
@mreyuyeyuy5444
@mreyuyeyuy5444 4 жыл бұрын
So, when the stock price is closed? Its daily or every next year?
@Lumovest
@Lumovest 4 жыл бұрын
Daily
@mreyuyeyuy5444
@mreyuyeyuy5444 4 жыл бұрын
@@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..
@pain2751
@pain2751 4 жыл бұрын
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
@nnrahbar
@nnrahbar Ай бұрын
masha Allah, awesome explanation,.. .........
@davidjames1684
@davidjames1684 4 жыл бұрын
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.
@jaw0449
@jaw0449 4 жыл бұрын
David James only when you play short with no long plays
@davidjames1684
@davidjames1684 4 жыл бұрын
@NerdyJock - "play short" - is basically the definition of trader (vs. investor).
@davidjames1684
@davidjames1684 4 жыл бұрын
@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.
@business.sailor
@business.sailor 2 жыл бұрын
Great explanation, may i know what software do you use for the video?
@MrKhan-dd7fp
@MrKhan-dd7fp 3 жыл бұрын
Just a bit confused. As you have explained it seems to me that the spot price for a stock is fixed by a single last completed buy and sell order at a given price. Wouldn't that lead to artificially creating price for a stock?? Can anyone explain?
@amazingsnow
@amazingsnow 10 ай бұрын
Great content. What about the effects of short selling and price.
@sndpmedhid
@sndpmedhid Ай бұрын
What's the music used in the end?
@Jetsudo
@Jetsudo 4 жыл бұрын
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?
@Lumovest
@Lumovest 4 жыл бұрын
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.
@DiegoAguila-rb1gz
@DiegoAguila-rb1gz Жыл бұрын
How does the free cash flow of the company affect the price of stock if at all?
@zhengxunwu2060
@zhengxunwu2060 4 жыл бұрын
but the question that i really want to ask is how exactly the bid happens?
@Lumovest
@Lumovest 4 жыл бұрын
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".
@amirunited2903
@amirunited2903 5 жыл бұрын
I have never seen a bid or ask button at any brokerage site and the brokers that I know of don't do that. Where does all of this asking and bidding actually take place? Is there some secret club of traders that meet?
@sagark7703
@sagark7703 4 жыл бұрын
Bid=buy ,ask=sell
@shortysmall
@shortysmall 4 жыл бұрын
The bid/ask is the spread. It's the difference between the price of selling a stock or purchasing it, usually a points. This allows the market makers to earn money. Like previously mentioned, the tighter the spread the more liquid the stock is.
@lucaseastman1877
@lucaseastman1877 2 жыл бұрын
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.
@ezasokotela7523
@ezasokotela7523 2 жыл бұрын
This is so intuitively presented. I would highly recommend this video to anyone new to investments.
@JuiceWrld-kr3yv
@JuiceWrld-kr3yv 4 жыл бұрын
What animation software did you use in this vid?
@luk5945
@luk5945 4 жыл бұрын
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...
@zerwif
@zerwif 4 жыл бұрын
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.
@user-ss6pf8ld2l
@user-ss6pf8ld2l 4 жыл бұрын
Because that is the reason you want to own a company? Look at buying stock as if you would buy the company.
@gatsbylight4766
@gatsbylight4766 3 жыл бұрын
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 $2?
@choudhary6964
@choudhary6964 4 жыл бұрын
I want to ask one question Share open at 1500 We buy at 1400 We sell at 1700 This way trading is so simple? Or Am I doing mistake, and something is happening behind the scenes
@hohohaha-l9l
@hohohaha-l9l 4 жыл бұрын
Or the shares could never hit 1700 or even 1400 ever again and you lose money.
@choudhary6964
@choudhary6964 4 жыл бұрын
@@hohohaha-l9l Haha , that day I was lucky.. i now Know the answer
@masterthebasics4846
@masterthebasics4846 3 жыл бұрын
How much does it take to move a stock by 1 point
@suryaraj3650
@suryaraj3650 4 жыл бұрын
No other channel explained intrinsic value the way you did. Really worth watching it.
@trezythirdy3527
@trezythirdy3527 4 жыл бұрын
is intrinsic value same as average value?
@SP-ov5iy
@SP-ov5iy 4 жыл бұрын
how many numbers of stock each company has?
@HotdogJuice
@HotdogJuice 4 жыл бұрын
The best advice I can give is to watch the news. There are psychological influences in the market. Bad news is bad news and good news is good news...typically.
@umangjain7440
@umangjain7440 4 жыл бұрын
Okay so the price of the stock also goes down bcoz the intrusive value estimated by some people varies so for eg. If my intrusive value is 250$ and the other persons is 280$ so he is willing to sell the stock at 290$ but im ready go sell it for 260$ so the buyer will obvio buy frm me ... so wil lthis drive the price down of stock?
@Lumovest
@Lumovest 4 жыл бұрын
Good example. The stock market movement will take into account the option of millions of other players. So when a broad base of investors start to estimate lower intrinsic value, it'll certainly drive down the stock price.
@Josiah_Harder
@Josiah_Harder 3 жыл бұрын
So what if 2 parties collude to trade for half the current market price to drive the price down and buy more for cheap or inversely sell for more. The price can't just be determined by the last trade can it? It isn't weighted somehow?
@Lumovest
@Lumovest 3 жыл бұрын
Stock brokerage apps don't have the functionality that allows you to do such a thing.
@Josiah_Harder
@Josiah_Harder 3 жыл бұрын
@@Lumovest Thank you for pointing that out. How about a different scenario where someone sells 1 stock for half market price. Would that crash the chart or would he need to sell a large percentage of the total stock supply to have an effect? I'm wondering if there's a way to weight the quantity of stock sold at a certain price to determine how it effects the chart
@imranahmed2544
@imranahmed2544 4 жыл бұрын
How to determine internsic value??
@mikehoncho1915
@mikehoncho1915 5 жыл бұрын
I get that when more people buy the stock the stock goes up, but is it a computer or something that decides it?
@Lumovest
@Lumovest 5 жыл бұрын
Hi Brian, computer's involved but the dynamic is more like: buyer wants to buy stocks and sellers want to sell stocks. Depending on how eager the buyers are to buy the specific stock, sellers might ask for higher prices and buyers might pay that higher price. When the buyers agree to pay the higher price, the stock price goes up.
@mikehoncho1915
@mikehoncho1915 5 жыл бұрын
Lumovest - Investing Channel Ok thank you.
@sauravkotnala9925
@sauravkotnala9925 4 жыл бұрын
I have one question , what is the value of indexes and how is it calculated in first place
@alexop5919
@alexop5919 5 жыл бұрын
9:52 "great" second diagram. So you saying graph can go backwards in time?
@rocky12rullshard
@rocky12rullshard 4 жыл бұрын
@Embre2000 you were rude, but correct. Thank you!
@qq-sq6qz
@qq-sq6qz 4 жыл бұрын
@@rocky12rullshardLmao there's nothing wrong with having a low iq. I would know :D
@solecandids8168
@solecandids8168 4 жыл бұрын
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??
@Viper-sn5cx
@Viper-sn5cx 4 жыл бұрын
Is intrinsic value the same as speculation? Are they based off of each other?
@Stellagang
@Stellagang 3 жыл бұрын
Is the future value also known as the intrinsic value of a stock??
@Timon124
@Timon124 3 жыл бұрын
Sir iam a student just out of curiosity i know it may sound a dumb question but how do they return invested money to soo many shareholders i don't understand i know how stock markets work you get return in investment but how do they return the investment to millions of shareholders isn't it complicated
@BrianEverything
@BrianEverything Жыл бұрын
What about companies that do not pay off dividends?
@amaangigani9372
@amaangigani9372 2 жыл бұрын
I still don't understand. How the price goes up or down? If price 230.12, how does it go up to 230.16? What is the reason? Demand supply is not the answer. I want to know simple math terms
@whodat1624
@whodat1624 4 жыл бұрын
One of the best videos I've watched on stocks
@jhoc2x2
@jhoc2x2 3 жыл бұрын
It's weird this is my first time seeing this video. Can someone point me to the part 2 ?
@americano1976
@americano1976 5 жыл бұрын
Does it really have anything to do with free cash flow if a stock inflates and deflates not congruent to its free cash flow?
@americano1976
@americano1976 5 жыл бұрын
Explain a pump and dump..
@Lumovest
@Lumovest 5 жыл бұрын
@@americano1976 In the short term, stock prices will inflate and deflate not necessarily in relation to its free cash flow. However, when the companies of inflated / deflated stocks eventually report earnings and investors see the actual amount of cash the company is generating, the prices eventually correct themselves. So for example, suppose a stock is trading at a $100 because the market expects it to earn $10 per share in Levered Free Cash Flow. The market is basically willing to pay 10x for LFCF. Everybody is really hyped about its products and investors are really confident that the products will succeed. Then comes the earnings report and company disclosed that the products were a failure and it only earned $1 per share in LFCF. All of a sudden, that $100 price would prove very inflated and the stock price will drop. This is why stock prices often rise up and down significantly after earnings release. It corrects inflated and deflated stock prices as how much money the company earns eventually come to light.
@americano1976
@americano1976 5 жыл бұрын
Eps isn’t a determination of market value tho?
@americano1976
@americano1976 5 жыл бұрын
....
@americano1976
@americano1976 5 жыл бұрын
Stocks go up and down on news..in fact it’s more meaningless you ever hear buy on the rumor sell on the news ?
@joanahicks8501
@joanahicks8501 3 жыл бұрын
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!
@firstname5893
@firstname5893 4 жыл бұрын
Informative video! Where is part 2?
@francescatowers4092
@francescatowers4092 11 ай бұрын
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!
@JamesBond2.0
@JamesBond2.0 11 ай бұрын
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
@kartikmehta7389
@kartikmehta7389 5 жыл бұрын
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.
@Lumovest
@Lumovest 5 жыл бұрын
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-$20s. Hope this helps!
@kartikmehta7389
@kartikmehta7389 5 жыл бұрын
@@Lumovest Thank you.
@beautifulpaintingwi
@beautifulpaintingwi 4 жыл бұрын
Are these investors that are public share holders or are they insiders and is this calculated by the market movers and the end of day.? Thank you
@Moodboard39
@Moodboard39 Жыл бұрын
Yeaa
@clashwithbidhant4853
@clashwithbidhant4853 4 жыл бұрын
Thankyou for such a great knowledgeable talk about stock market.
@Lumovest
@Lumovest 4 жыл бұрын
Support from generous fans like yourself make this possible!
@invader_mythic
@invader_mythic 4 жыл бұрын
So i have a question. When you initially buy a stock, are you buying from the company or buying from someone else who already owns a stock?
@markseymourdavid7590
@markseymourdavid7590 4 жыл бұрын
Reach out to a professional to guide you with more detailed information on how to earn profitably His on whats👇👇
@markseymourdavid7590
@markseymourdavid7590 4 жыл бұрын
+1 9 1 6 2 4 9 8 5 6 8.
@pratikdahal9784
@pratikdahal9784 4 жыл бұрын
I appreciate your effort.... Thanks for the video.... Love from Nepal....
@Lumovest
@Lumovest 4 жыл бұрын
Thank you Pratik!
@pratikdahal9784
@pratikdahal9784 4 жыл бұрын
Welcome..... May you gain enough views and subscribers...... Keep moving.... Hard work pays.....
@CyberJones
@CyberJones 3 жыл бұрын
wow, this video by far is the best explaining stock price
@Lumovest
@Lumovest 3 жыл бұрын
Thanks Kenny!
@1993meet
@1993meet 3 жыл бұрын
Thanks for this simplified explanation.
@Rayjack1the1real1one
@Rayjack1the1real1one 3 жыл бұрын
There is something I am missing here. At the beginning of the video you said that the stock price is the price of the last transaction. This means that if I buy 1 Apple share for 200$ 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.
@Lumovest
@Lumovest 3 жыл бұрын
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.
@Moodboard39
@Moodboard39 Жыл бұрын
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
@mahsadoorfard3202
@mahsadoorfard3202 4 жыл бұрын
I learned a lot. Thanks for simplifying everything.
@deejaaay7600
@deejaaay7600 4 жыл бұрын
How do I ask apple for a certain return rate... When I buy a stock, I buy it and never get to choose what kind of return I want...
@markseymourdavid7590
@markseymourdavid7590 4 жыл бұрын
Reach out to to professional to guide you with more detailed information on how to be a profitable trader
@markseymourdavid7590
@markseymourdavid7590 4 жыл бұрын
Text him on whats👇👇
@markseymourdavid7590
@markseymourdavid7590 4 жыл бұрын
+1 9 1 6 2 4 9 8 5 6 8.
@pustiinovalex7157
@pustiinovalex7157 4 жыл бұрын
I THANK YOU SO MUCH!!, THAT'S WHAT I'VE BEEN SEARCHING FOR A LONG TIME
@Axel-sf5fe
@Axel-sf5fe 4 жыл бұрын
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
@AmberUnavailable
@AmberUnavailable 3 жыл бұрын
Wait when was Apple’s stock price ever in the 200s???
@andrewwizard1577
@andrewwizard1577 4 жыл бұрын
WHY IS THIS AND TAXES NOT TAUGHT IN SCHOOL?!? This is much more useful than English literature, theatre, or chemistry for average Americans
@rajnishbhagat9093
@rajnishbhagat9093 5 ай бұрын
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)
@wedodev-web
@wedodev-web 4 жыл бұрын
What happens if company has negative free cash flow?
@rangaswamy4330
@rangaswamy4330 4 жыл бұрын
Plz make a video about how to cal intrinsic value
@IKnowYouDidnt
@IKnowYouDidnt 4 жыл бұрын
How does the market maker make money?... Please explain why the stock price goes down after a reverse split...
@star-gs2gj
@star-gs2gj 4 жыл бұрын
stock market or share market s different or both are same
@Lumovest
@Lumovest 4 жыл бұрын
Same. People, at least those in the United States, usually call it stock market. Not share market. But stock and share are synonymous.
@star-gs2gj
@star-gs2gj 4 жыл бұрын
@@Lumovest both are same or not
@rafsanlazim5515
@rafsanlazim5515 4 жыл бұрын
Absolutely loved this video
@hosseinaboutalebi9998
@hosseinaboutalebi9998 3 жыл бұрын
Hi, I just watched your channel and subscribed. Please keep up your good works. Thanks
@patricksimonetti4385
@patricksimonetti4385 2 жыл бұрын
Can anyone explain to me, why is the stock investor a beneficiary of that future free cash flow ? I understand companies can pay dividends or do share buy backs, but they don't have to !! What if the board chooses to reward its executives and not the share holders ? What am I missing ?
@TheSachinmrig
@TheSachinmrig 3 жыл бұрын
Simple and easy to understand the basic concept but very important.
@kamilliolincoln8933
@kamilliolincoln8933 Жыл бұрын
Apple's all time high stock price was 187.00$ on June 22, 2023. Why on that video it shows 221$ on 2018? I am so confused, can someone Please explain me?
@Lumovest
@Lumovest Жыл бұрын
Apple did a stock split after this video was published, which changed historical prices.
@jackcheung4301
@jackcheung4301 4 жыл бұрын
Unlimited QE by the FED will change everything in anyway.
@nullifier_
@nullifier_ 3 жыл бұрын
4:24 There it is! As easy as it can be explained. Thanks
@mofogamingttv9835
@mofogamingttv9835 3 жыл бұрын
Watching this in 2021. Just to get your algorithm back for your channel
@Lumovest
@Lumovest 3 жыл бұрын
Haha super thankful!
@Senad023
@Senad023 4 жыл бұрын
This is too complicated for me. I just started learning about stock investments.
@King-bx4ch
@King-bx4ch 4 жыл бұрын
Insta : beginnersmindset It should get you started nicely
@ianderrick2162
@ianderrick2162 4 жыл бұрын
Lol. That was how complicated it was for me couple of months ago when I started out.
@ianderrick2162
@ianderrick2162 4 жыл бұрын
I was so eager to grow my SSI since I stay at home and no daily income coning in. I currently do my Investments with an independent broker under FINRA's Certification.
@rocketman-my2ul
@rocketman-my2ul 4 жыл бұрын
@@ianderrick2162 is it a commission based agreement? And how much is it? Also how do I get involved, am from Vietnam.
@ianderrick2162
@ianderrick2162 4 жыл бұрын
@@rocketman-my2ul yes 15% commission
@moonshade99
@moonshade99 4 жыл бұрын
Ok, i understand many things, apart from Like for example you mentioned that bidding takes place and buyer with 223 dollars will be sold stock and now 223 is the atock price,how does that bidding takes place, when as i open market to buy i can only purchase that stock at lets say 223 dollars, where is the bidding taking place here?
@idancohen92
@idancohen92 4 жыл бұрын
Can you circle around the point but you never get to it
Stock Multiples: How to Tell When a Stock is Cheap/Expensive
9:47
The Plain Bagel
Рет қаралды 1,7 МЛН
Explained | The Stock Market | FULL EPISODE | Netflix
17:34
Netflix
Рет қаралды 15 МЛН
1% vs 100% #beatbox #tiktok
01:10
BeatboxJCOP
Рет қаралды 67 МЛН
Леон киллер и Оля Полякова 😹
00:42
Канал Смеха
Рет қаралды 4,7 МЛН
“Don’t stop the chances.”
00:44
ISSEI / いっせい
Рет қаралды 62 МЛН
The Difference Between Trading and Investing
10:29
The Plain Bagel
Рет қаралды 2 МЛН
How to Invest for Beginners in 2025
21:25
Mark Tilbury
Рет қаралды 1,5 МЛН
8 Steps to Research a Company to Invest in - Best Investment Series
16:16
Learn to Invest - Investors Grow
Рет қаралды 888 М.
The Intelligent Investor’s Road to $1,000,000
23:13
The Swedish Investor
Рет қаралды 4,7 МЛН
The Psychology of Money in 20 minutes
20:36
Escaping Ordinary (B.C Marx)
Рет қаралды 4,2 МЛН
How to Calculate the Intrinsic Value of a Stock (Full Example)
16:47
Howard Marks: 78 Years of Investing Wisdom in 60 Minutes (MUST WATCH)
1:05:30
1% vs 100% #beatbox #tiktok
01:10
BeatboxJCOP
Рет қаралды 67 МЛН