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

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  • Опубликовано: 21 янв 2025

Комментарии • 771

  • @Lumovest
    @Lumovest  6 лет назад +195

    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 лет назад +7

      Have the shares in your company went up after this informative video? Lol

    • @dandagerman6604
      @dandagerman6604 5 лет назад +7

      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 лет назад +4

      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 года назад +1

      Unlimited QE by the FED will change everything in anyway.

    • @dandagerman6604
      @dandagerman6604 4 года назад

      @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 11 месяцев назад +25

    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 23 дня назад

      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 лет назад +369

    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 лет назад +9

      Thanks for the kind words!

    • @define7433
      @define7433 4 года назад

      It has a lot to do with people who don't really fully understand what they are talking about lmao

    • @mansisrivastava0001
      @mansisrivastava0001 4 года назад

      Exactly

    • @ericm9305
      @ericm9305 3 года назад

      Impressive.

    • @jack-gf6jw
      @jack-gf6jw 3 года назад

      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.

  • @mathiasbrekkan4826
    @mathiasbrekkan4826 4 года назад +29

    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!

  • @utilityunified8114
    @utilityunified8114 5 лет назад +50

    Best Videos on Stock Market i ever watched...thanks from India, lotsa love !!

    • @Lumovest
      @Lumovest  5 лет назад +1

      Thanks for the support!!

  • @johnyhawkahsan
    @johnyhawkahsan 4 года назад +8

    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.

  • @tracysky7972
    @tracysky7972 5 месяцев назад +177

    Hello, i wish to start investing but i don't know where to begin. Any advice or contact for help?

    • @annarichards2297
      @annarichards2297 5 месяцев назад

      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 месяцев назад

      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 месяцев назад

      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 месяцев назад +1

      Yes, David Michael Roberts Smith Harris Johnson is the one for you. Don't let these bots fool you.

    • @metris5402
      @metris5402 25 дней назад

      ⁠😂

  • @ZA-sy7dn
    @ZA-sy7dn 5 лет назад

    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

  • @bardacha100
    @bardacha100 Год назад +1

    Clearest video of all times ! Many Thx

  • @saksha86
    @saksha86 5 месяцев назад +18

    Stop the music,difficult to concentrate

  • @firdaushbhadha2597
    @firdaushbhadha2597 4 года назад +1

    Easily the best explanation I have seen.

  • @arnabhai3629
    @arnabhai3629 4 года назад +16

    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 года назад +4

      Haha and your supportive words tell how kind you are. Thank you :)

  • @Adrian-cn5rk
    @Adrian-cn5rk Год назад

    This was done beautifully. I made the exact same Google search, thankfully i found this video!

  • @toanduongmanh8069
    @toanduongmanh8069 3 года назад

    Seriously, you guys are the best of the best

  • @lucaseastman1877
    @lucaseastman1877 2 года назад +1

    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.

  • @lamemeshitface
    @lamemeshitface 4 года назад +66

    Recommendation: Add subtitles for beginners to better understand along the way :)

  • @whodat1624
    @whodat1624 4 года назад

    One of the best videos I've watched on stocks

  • @gauravladha5465
    @gauravladha5465 4 года назад +138

    Stop with the music.. it's difficult to concentrate

    • @bryanlife3311
      @bryanlife3311 4 года назад +11

      Yeah that's supposed to be correct.. But for some reason the music is making me more relaxed 😅

    • @kevinp113
      @kevinp113 4 года назад +9

      I don't think it's the music... it's you

    • @steph2cool7
      @steph2cool7 4 года назад

      Kevin P Lol exactly

    • @User-je7gf
      @User-je7gf 4 года назад +2

      It didnt bother me before i rode this lol i didnt even realize there was music now it does tho

    • @manellis4126
      @manellis4126 4 месяца назад

      Most definitely lol if it was soft slow jazz lol but it’s to Up’y Up’y nd fast

  • @mayurwalvekar
    @mayurwalvekar 6 лет назад +31

    I appreciate your conceptual clarity..!

    • @Lumovest
      @Lumovest  6 лет назад +1

      Hey Mayur, thanks for watching!

  • @Axel-sf5fe
    @Axel-sf5fe 4 года назад

    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

  • @suryaraj3650
    @suryaraj3650 4 года назад +3

    No other channel explained intrinsic value the way you did. Really worth watching it.

  • @clashwithbidhant4853
    @clashwithbidhant4853 4 года назад +7

    Thankyou for such a great knowledgeable talk about stock market.

    • @Lumovest
      @Lumovest  4 года назад +1

      Support from generous fans like yourself make this possible!

  • @ezasokotela7523
    @ezasokotela7523 2 года назад +4

    This is so intuitively presented. I would highly recommend this video to anyone new to investments.

  • @CyberJones
    @CyberJones 3 года назад

    wow, this video by far is the best explaining stock price

  • @1993meet
    @1993meet 3 года назад

    Thanks for this simplified explanation.

  • @nnrahbar
    @nnrahbar Месяц назад +1

    masha Allah, awesome explanation,.. .........

  • @AnandJayarajan
    @AnandJayarajan 3 года назад +7

    video starts at 0:45

    • @117_sins7
      @117_sins7 2 месяца назад +1

      wished i saw this 45 seconds ago

  • @rafsanlazim5515
    @rafsanlazim5515 4 года назад +2

    Absolutely loved this video

  • @TheSachinmrig
    @TheSachinmrig 3 года назад

    Simple and easy to understand the basic concept but very important.

  • @HotdogJuice
    @HotdogJuice 4 года назад

    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.

  • @ebrahimalabadi3328
    @ebrahimalabadi3328 4 года назад

    Thx man for explain how stock market determine and also fluctuates !!

  • @pratikdahal9784
    @pratikdahal9784 4 года назад +5

    I appreciate your effort....
    Thanks for the video....
    Love from Nepal....

    • @Lumovest
      @Lumovest  4 года назад +1

      Thank you Pratik!

    • @pratikdahal9784
      @pratikdahal9784 4 года назад

      Welcome.....
      May you gain enough views and subscribers...... Keep moving.... Hard work pays.....

  • @kesharwanihimanshu84
    @kesharwanihimanshu84 4 года назад +3

    Hey would you please tell ,how much should I assume a growth rate of explicit for cast period, aka continuing value ,thanks

  • @patrickqueen6558
    @patrickqueen6558 4 года назад

    Wow very clear and precise

  • @AkshayVasandani
    @AkshayVasandani 4 года назад +6

    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 года назад

      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.

  • @saddestdayever1276
    @saddestdayever1276 2 года назад

    Really clear explanation on stock prices! I am an accounting student and I am currently taking Intermediate Accounting 2 and I just couldn't figure out how stock prices would be accounted for and how much cash is going to be received! Thank you so much!

  • @pustiinovalex7157
    @pustiinovalex7157 4 года назад +1

    I THANK YOU SO MUCH!!, THAT'S WHAT I'VE BEEN SEARCHING FOR A LONG TIME

  • @JenghisMusic
    @JenghisMusic 4 года назад +4

    finally what im searching for

  • @miguelcrespopetao8828
    @miguelcrespopetao8828 4 года назад

    This gotta be the new youtube financial GOAT. Very clear explanation sir 👍🏻

  • @hosseinaboutalebi9998
    @hosseinaboutalebi9998 3 года назад

    Hi, I just watched your channel and subscribed. Please keep up your good works. Thanks

  • @mahsadoorfard3202
    @mahsadoorfard3202 4 года назад +7

    I learned a lot. Thanks for simplifying everything.

  • @jakkuwolfinsomnia8058
    @jakkuwolfinsomnia8058 3 месяца назад

    Excellent video on stock market and financial education

  • @virenmali991
    @virenmali991 4 года назад +1

    Sir where is part 2 of this video? Please share link

  • @joanahicks8501
    @joanahicks8501 3 года назад +7

    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!

  • @balajitr9499
    @balajitr9499 4 года назад +1

    Best video I have seen in recent times , great work !!

  • @nullifier_
    @nullifier_ 3 года назад

    4:24
    There it is! As easy as it can be explained. Thanks

  • @tomsvensson78
    @tomsvensson78 5 лет назад +11

    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 лет назад +8

      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 лет назад +3

      @@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 лет назад +5

      @@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.

  • @yorumnachung
    @yorumnachung 4 года назад

    whats the supplier in the free cash flow animation. isnt the company itself a supplier ?

  • @taoyuanheng7088
    @taoyuanheng7088 4 года назад +2

    i definitely recommend this video to my friends🤗. Awesome.

  • @billy.n2813
    @billy.n2813 4 года назад +2

    Any book recommendations for beginners to further concepts learned in the video ?

    • @Lumovest
      @Lumovest  4 года назад +2

      Here you go: www.lumovest.com/reading-list/

  • @davidjames1684
    @davidjames1684 4 года назад +5

    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 года назад

      David James only when you play short with no long plays

    • @davidjames1684
      @davidjames1684 4 года назад

      @NerdyJock - "play short" - is basically the definition of trader (vs. investor).

    • @davidjames1684
      @davidjames1684 4 года назад

      @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.

  • @lmathews5608
    @lmathews5608 4 года назад

    Amazing explanation 👏👏👏👏👏👏

  • @basavasagarkpatil8973
    @basavasagarkpatil8973 4 года назад +1

    You should upload more videos,you are great

  • @sharmaaks729
    @sharmaaks729 3 года назад

    This video is gem.

  • @AHSepulvedaBunny
    @AHSepulvedaBunny 4 года назад +2

    Greatest video. Thank you

  • @ShivamGupta.31
    @ShivamGupta.31 3 года назад

    liked the way you explained it all I such a simple way!

  • @Sonu-pb8ec
    @Sonu-pb8ec 4 года назад +5

    Made-easy.... looking for more.

    • @Lumovest
      @Lumovest  4 года назад +1

      More will be coming! And there are also hundreds of videos on our Lumovest website :)

  • @mojoja99
    @mojoja99 3 года назад +1

    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 года назад +2

      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 года назад

      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 года назад

      @@Lumovest Thank you so much for replying!

  • @yakkyuu12
    @yakkyuu12 4 года назад +1

    Your analysis is very clean and taken right from your econ book, class, MBA program or whatever. It does NOT at ALL take into consideration market makers, banks influence(their manipulation) and even your mutual fund company --- that will work AGAINST you ( yes --- your account --in their FUNDS) to short-- that is done to get the shares OUT OF YOUR HANDS--- they DO know the intrinsic value and they ALSO KNOW --- investors CAN KNOW this also, SO their GOAL is to PUSH the value DOWN SO HARD that your RESEARCH, time and math that DOES equal a GOOD VALUE--- that is YOUR GUIDING LIGHT---- AS YOU BUY at this "so called INTRINSIC VALUE" is NOW FAR above the PRICE the MARKET MAKERS, brokers and BANKS --- ALL got THEIR PRICE-- that is NOW FAR below -- your "INTRINSIC VALUE" PRICE --- you ------ ALREADY BOUGHT AT! This is a CLASSIC "VALUE TRAP" of a different kind( a technical trap). Now THEY have the "REAL discounted INTRINSIC VALUE"--- NOT YOU!
    TO make it harder on your "FUNDAMENTAL ANALYSIS" they will SELL at a price that is NOT close to your "future based price" ! When they sell--- with their MASSIVE NUMBER of shares -- as MANY banks and brokers HAVE----- your valuable homework of "intrinsic value: will be of LITTLE VALUE -- even OVER TIME - as they SELL-- pushing 'your stock price DOWN--- for a LONG Time!!!
    Thus TRAPPING you --- AGAIN --- while you WAIT -- LONGER and your ALSO valuable investor measurement of ----- CAGR --- dwindles, as TIME goes by and you wait for that value to come TRUE!
    In the MEANTIME -- the market makers, banks, brokers , high speed traders ----- they WILL ALL have ROTATED ( VERY IMPORTANT) to another sector that THEY are MAKING their---- CAGR -- NOW!
    While you --- SIT WAITING--- because--- your MATH has TOLD you --- "you are RIGHT" and you WON'T let GO-- as your stock price NEVER hits the VALUE --- your math has said "you are right",
    BECAUSE-- ALL the MAJOR PLAYERS who MAKE IT POSSIBLE( IMPORTANT) have --MOVED on and the VOLUME(important) to MOVE your stock price( your MATH-- AGAIN) never gets to, never gets there--- because there is ---- NO volume(enough people WILLING to pay MORE) ---- ARE GONE!!
    *****IMPORTANT NOTES;
    1) Warren Buffet did NOT make the VAST majority of his returns from what you READ or HEARD--- PERIOD!--- He has a LOT of leverage from money he DID ( PAST TENSE-- important!!)make-- MANY years ago --- he is DOING POORLY in the last 5-6 years! ESPECIALLY compared to other BIG, his REAL competitors( important-- not you, me - or even Fidelity!) He has RECENTLY made from just being a bank that charges high interest rates--- period!------ ALL your MATH should be JUST ---- a guideline --- NOT a RULE or staple -- of ANY KIND!!
    2)**** I REALLY IMPLORE YOU---- WATCH the DOCUMENTARY----( NOT MOVIE --- ALL FACTUAL!!) ----- "THE MIDAS TOUCH" --- vimeo.com/244903345 -- it is older and OFF the charts good --- you WILL LEARN how MATH can and WILL get you into trouble!! It is ONLY --- 50 minutes LONG!!--- INVESTORS mostly -- refuse to watch it, because they THINK their math is --- the HOLY GRAIL!!!
    A little preface--- it is about Academics and does lean more toward options trading----- BUT --- it is REALLY, TOTALLY INCLUSIVE of ALL your investment math!! And the academics who thought they were smarter than then REST of WALL street!

  • @kevinshane5361
    @kevinshane5361 4 года назад

    Outstanding bro👍👍👍👍

  • @FreethinkingSecularist
    @FreethinkingSecularist 3 года назад

    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

  • @rajnishbhagat9093
    @rajnishbhagat9093 5 месяцев назад

    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)

  • @jfbskkkd12
    @jfbskkkd12 5 лет назад +1

    How do you calculate cumulative free cash flow

  • @cipopol8110
    @cipopol8110 4 года назад

    amazing , easy to understand

  • @sushantdixit95
    @sushantdixit95 4 года назад +2

    Never understood the price movement because of demand and supply....but your way of explanation is way better than any other videos....
    Also the headline price ....dis explanation is an eye opener

  • @sanjithkumar7600
    @sanjithkumar7600 4 года назад

    Clear as crystal

  • @Adi-xy8iu
    @Adi-xy8iu 4 года назад

    Clear Explanation❤️. I think this is the undervalued You tube channel on stock market. I wish this channel gets more subscribers in the future.

  • @septiadhiwirawan6783
    @septiadhiwirawan6783 3 года назад

    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??

  • @ivanpp16
    @ivanpp16 3 года назад

    This is great. Thanks!

  • @jackcheung4301
    @jackcheung4301 4 года назад +24

    Unlimited QE by the FED will change everything in anyway.

  • @luk5945
    @luk5945 4 года назад +10

    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 года назад

      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 года назад +1

      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 года назад

      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?

  • @prasad5378
    @prasad5378 3 года назад

    Very underrated video

  • @MEADOWMAESTRO
    @MEADOWMAESTRO 4 года назад

    Good one

  • @steph2cool7
    @steph2cool7 4 года назад +1

    Extremely helpful, new subscriber for the long haul 🙂

    • @Lumovest
      @Lumovest  4 года назад

      I'm glad Steph :)

  • @FirstnameLastname-cm1de
    @FirstnameLastname-cm1de 4 года назад

    this video is well explained . 👍

    • @Lumovest
      @Lumovest  4 года назад

      Thank you :) Check out our website for more content!

  • @yuvarajyuvi2747
    @yuvarajyuvi2747 6 лет назад +3

    What a logical explanation😎,superb

  • @benjaminthompsonmusic
    @benjaminthompsonmusic 3 года назад +4

    Fantastic video! Super clear explanation of everything that most people just skip over. Really appreciate the detail!

  • @amazingsnow
    @amazingsnow 10 месяцев назад

    Great content. What about the effects of short selling and price.

  • @Jetsudo
    @Jetsudo 4 года назад

    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 года назад

      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.

  • @MenezesLouis
    @MenezesLouis 4 года назад +6

    I nvr comment on youtube videos.. Ur video was engaging and crisp.. Kp up the good wrk

  • @MrKhan-dd7fp
    @MrKhan-dd7fp 3 года назад

    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?

  • @mreyuyeyuy5444
    @mreyuyeyuy5444 4 года назад +1

    So, when the stock price is closed? Its daily or every next year?

    • @Lumovest
      @Lumovest  4 года назад

      Daily

    • @mreyuyeyuy5444
      @mreyuyeyuy5444 4 года назад

      @@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..

  • @theopats2660
    @theopats2660 4 года назад +6

    Bro your videos are incredible. I want to start trading and your videos are very helpful up to a point . You keep it simple , graphics design awesome, and the voice . Keep going

    • @Lumovest
      @Lumovest  4 года назад

      Thanks so much!!

  • @firstname5893
    @firstname5893 4 года назад

    Informative video! Where is part 2?

  • @mofogamingttv9835
    @mofogamingttv9835 3 года назад +3

    Watching this in 2021. Just to get your algorithm back for your channel

    • @Lumovest
      @Lumovest  3 года назад

      Haha super thankful!

  • @kittharindu
    @kittharindu 4 года назад

    Very informative guys.!

  • @bayobayo3225
    @bayobayo3225 4 года назад

    Great information

  • @moivien
    @moivien 5 лет назад +4

    Well explained bro! Keep it up!

    • @Lumovest
      @Lumovest  5 лет назад

      Thanks for the kind words!

  • @Lukazzz06
    @Lukazzz06 4 года назад

    What's the song's name playing from 3:10?

  • @zhengxunwu2060
    @zhengxunwu2060 4 года назад +7

    but the question that i really want to ask is how exactly the bid happens?

    • @Lumovest
      @Lumovest  4 года назад +12

      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".

  • @aggropa
    @aggropa 5 лет назад +1

    So much better than the number 1 video for this topic. That's a thumbs up and subscribe from me.

  • @DiegoAguila-rb1gz
    @DiegoAguila-rb1gz 11 месяцев назад

    How does the free cash flow of the company affect the price of stock if at all?

  • @catherineahonsi4989
    @catherineahonsi4989 4 года назад

    Well explained

  • @brightkanyange9633
    @brightkanyange9633 3 года назад

    Great video

  • @Josiah_Harder
    @Josiah_Harder 3 года назад

    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 года назад

      Stock brokerage apps don't have the functionality that allows you to do such a thing.

    • @Josiah_Harder
      @Josiah_Harder 3 года назад

      @@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

  • @Dracstar
    @Dracstar 4 года назад

    Really clear video! Nice job :)

  • @Stellagang
    @Stellagang 3 года назад +3

    I'm still confused on whats intrinsic value relative to future value

  • @andrewwizard1577
    @andrewwizard1577 4 года назад

    WHY IS THIS AND TAXES NOT TAUGHT IN SCHOOL?!? This is much more useful than English literature, theatre, or chemistry for average Americans

  • @invader_mythic
    @invader_mythic 4 года назад

    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 года назад

      Reach out to a professional to guide you with more detailed information on how to earn profitably
      His on whats👇👇

    • @markseymourdavid7590
      @markseymourdavid7590 4 года назад

      +1 9 1 6 2 4 9 8 5 6 8.

  • @masterthebasics4846
    @masterthebasics4846 3 года назад

    How much does it take to move a stock by 1 point