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Ever feel intimidated by the stock market?

vladgrumezavip5
2024-02-21 02:12:17
Like it's some complicated world locked away from regular folks? Relax, we're here to break it down. Imagine you built a business, but need more cash to expand, or, maybe, a private jet. Where do you turn? Look no further than the stock market! Think of it like selling pieces of your company while staying in charge. That's what an Initial Public Offering (IPO) does.How much can you make? Let's talk Facebook! Zuckerberg took it public in 2012, raking in billions! He wasn't greedy, though... right? Well, he sold even more shares later, boosting his wealth further. The stock price even jumped initially! But wait, there's more... it crashed just as quickly!So, what gives? Dividends! Historically, stocks were bought for them, like tiny profit shares. You buy a stock, you become a partial owner, entitled to some profit, right? Sounds good! Except... you likely own just a sliver of a massive company. Your 10 Facebook shares in 2017 wouldn't get you much of a payout. The board decides what happens with the profits, and their priorities might not align with your private jet dreams.But hey, not all CEOs are Zuckerberg! Apple, for example, paid out billions in dividends last year. Not a huge chunk per share, but hey, something! But today, it's not just about dividends. Take Apple's stock price - it soared 33% in a year! Way better than the average. Remember the trillion-dollar Apple valuation? Sounds impressive, but here's the trick: stock splits. They split their shares, making them more affordable and attracting more investors.Not all companies do this, though. Some, like Warren Buffett's Berkshire Hathaway, never split theirs. That's why a single share costs over $300,000! Most of us can't join that club, but fear not! Buffett offers affordable Class B shares for the rest of us.The stock market is complex, but hopefully, this video shed some light! Remember, knowledge is power.

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