Video: Why Do We Buy Stocks?

Joel Anderson |

The financial world can be brutally complicated. With so many different markets and securities to choose from, it's easy to get overwhelmed. Even a question as simple as "what, exactly, is a stock?" can be a head-scratcher. Many retail investors own a whole portfolio of stocks without really understanding what those securities actually mean.



And if elementary school taught us anything, it's that cartoons from the 1950s are the best way to learn about anything. Here's a lovely little look the nature of public companies and common stock. While pretty clearly dated (companies need profits, holdings, and cash to get onto the New York Stock Exchange? Uh-oh, I guess nobody told Twitter (TWTR) that), the video still offers an excellent overview of the nature of public ownership of a business.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
TWTR Twitter Inc. 17.98 -0.17 -0.94 15,565,326 Trade
LAHO Lans Holdings Inc 0.01 0.00 0.00 0

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