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.

 

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Companies

Symbol Name Price Change % Volume
TWTR Twitter Inc. 19.40 -0.08 -0.41 11,535,510
LAHO Lans Holdings Inc 0.07 0.00 0.00 0

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