Let's break this downwith an example. Company A wantsto grow their business. They need...
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Let's break this down
with an example. Company A wants
to grow their business. They need money to do so. So they go to the stock market and sell 100 shares
to the general public. These shares
are called the float. Individual investors
who want to grow their money bring it to the stock market, where they invest in companies
like Company A. They fight over how much
that company is worth until the price is discovered. - This is called price discovery. At its most basic level,
the price of these shares is determined by both supply,
or how many there are, and demand, or how badly
people want them. Realistically, there won't
always be someone willing to buy or sell
a share from you when you want
to buy or sell your shares, which is why we have
market makers. A market maker's function
is to provide liquidity
with an example. Company A wants
to grow their business. They need money to do so. So they go to the stock market and sell 100 shares
to the general public. These shares
are called the float. Individual investors
who want to grow their money bring it to the stock market, where they invest in companies
like Company A. They fight over how much
that company is worth until the price is discovered. - This is called price discovery. At its most basic level,
the price of these shares is determined by both supply,
or how many there are, and demand, or how badly
people want them. Realistically, there won't
always be someone willing to buy or sell
a share from you when you want
to buy or sell your shares, which is why we have
market makers. A market maker's function
is to provide liquidity
Full Transcript
00:00:01.000 --> 00:00:03.125
Let's break this down
with an example.
00:00:03.292 --> 00:00:05.167
Company A wants
to grow their business.
00:00:05.334 --> 00:00:07.000
They need money to do so.
00:00:07.167 --> 00:00:08.709
So they go to the stock market
00:00:08.875 --> 00:00:11.025
and sell 100 shares
to the general public.
00:00:11.709 --> 00:00:13.005
These shares
are called the float.
00:00:14.084 --> 00:00:16.292
Individual investors
who want to grow their money
00:00:16.459 --> 00:00:18.000
bring it to the stock market,
00:00:18.167 --> 00:00:20.292
where they invest in companies
like Company A.
00:00:21.025 --> 00:00:22.875
They fight over how much
that company is worth
00:00:23.002 --> 00:00:24.667
until the price is discovered.
00:00:25.209 --> 00:00:27.584
- This is called price discovery.
00:00:28.542 --> 00:00:31.417
At its most basic level,
the price of these shares
00:00:31.584 --> 00:00:34.075
is determined by both supply,
or how many there are,
00:00:34.917 --> 00:00:38.167
and demand, or how badly
people want them.
00:00:40.792 --> 00:00:42.709
Realistically, there won't
always be someone
00:00:42.875 --> 00:00:44.875
willing to buy or sell
a share from you
00:00:45.002 --> 00:00:47.167
when you want
to buy or sell your shares,
00:00:47.334 --> 00:00:49.834
which is why we have
market makers.
00:00:50.417 --> 00:00:53.209
A market maker's function
is to provide liquidity.
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Movie Summary
Retail investors and twin brothers Finley and Quinn Mulligan give an insider look at the GameStop "short squeeze" and the "Apes" fighting for transparency and accountability in our corrupt capital markets.
