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.

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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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