How The Stock Exchange Works (For Dummies)

What is the Stock Exchange
and how does it work? The Stock Exchange is nothing more
than a giant globally network tend to organize the market place where every day
huge sums of money are moved back and forth. In total over sixty trillion (60,000,000,000,000)
Euros a year are traded. More than the value of all goods and services
of the entire world economy. However it’s not apples or second hand
toothbrushes that are traded on this marketplace. But predominantly securities. Securities are rights to assets,
mostly in the form of shares. A share stands for
a share in a company. But why are shares traded at all? Well, first and foremost the value of a share
relates to the company behind it. If you think the value of
a company in terms of a pizza. The bigger the overal size of the pizza,
the bigger every piece is. If for example Facebook is able to greatly
increase its profits with a new buisness model. The size of the companies pizza will also increase,
and as a result so will the value of its shares. This is of course great for the share holders. A share which perhaps used to be worth 38 euros
could now be worth a whole 50 euros. When it’s sold this represents
a profit of twelve euro per share! But what does Facebook gain from this? The company can raise funds by selling
the shares and invest or expand it’s buisness. Facebook, for example, has earned sixteen billion
dollars from it’s listing on the Stock Exchange. The trading of shares though,
is frequently a game of chance. No one can say which company
will preform well and which will not. If a company has a good reputation,
investors will back it. A company with a poor reputation or poor
performance will have difficulty selling its shares. Unlike a normal market in which goods
can be touched and taken home on the Stock Exchange only
virtual goods are available. They apear in the form of share prices
and tables on monitors. Such shareprices can rise
or fall within seconds. Shareholders therefore have to act quickly
in order not to miss an opportunity. Even a simple rumor can result in the demand for
a share falling fast regardless of the real value of the company. Of course the opposite is also possible. If a particularly large number
of people buy weak shares. Because if they see for example
great potential behind an idea. Their value will rise as a result. In particular young companies
can benefit from this. Even though their sales might be falling,
they can generate cash by placing their shares. In the best case scenario this will result in
their idea being turned into reality. In the worst case scenario, this will result in a
speculative bubble with nothing more than hot air. And as the case with bubbles,
at some point, they will burst. The value of Germany’s biggest thirty companies
is summarized in what is known as the DAX share index. The DAX shows how well or poorly
these major companies and there by the economy as a whole
are performing at the present time. Stock Exchange is in other countries
also have there own indices. And all of these markets together
create a globally networked marketplace. Subtitles by the community

100 comments on “How The Stock Exchange Works (For Dummies)”

  1. Kurzgesagt – In a Nutshell says:

    There's brand new stuff in the Kurzgesagt Merch Shop. Check it out here:

  2. Above The Stars says:

    Stock Market brings together people who want to buy and sell the shares of companies. Its as simple as that.

  3. Adam says:

    Wow, didn't expect to stumble upon this old relic. Would love to see it remastered.

  4. Benitez Sdtrader says:

    IQD Momentum strategy is built with social at the forefront for stock exchange mostly. Fully integrated chat systems, chat forums and an excellent way to share your drawings and analysis with a single click to any group or forum.
    This makes for an excellent way to generate ideas or learn beside other traders with Lukasz Wilhelm. You have to try it and see it in action to understand the power of the implementation.

  5. Above The Stars says:

    The book to read on this topic for begginers is The Fundamentals of the Stock Market
    By B. O'Neill Wyss

  6. Fatjon says:

    I have made my first 60.000$ 1 month ago from stocks

  7. Ray Banuelos says:

    are you trying to profit from us the dummies??? if so, I guess you need the dummies

  8. Quade Q says:

    In the future it might help to mention dividends, buybacks, index funds, and mutual funds, perhaps in a follow up video.

  9. Skyler B says:

    Oh my. How sparse the end credits are in this one. Wonderful to see how far you guys have come!

  10. Anime Hivemind says:

    i liked this video, the comments were funny

  11. Fuquan Tiegermann says:

    2:17 mash-up with the german version?

  12. w0ttheh3ll says:

    Döner Inc. – lol

  13. AL Can says:

    Is there a video for dumb dummies?

  14. IMP Leno says:

    I…I still don’t get it ;-;

  15. Kay Kardia says:

    I'm a visual learner. So this made sense. Thank you!

  16. Ruzindana Jean -Marie says:

    I understand but business & stock marketing and international corruptions of Belgium authority are not combination , Authority of Belgium using my emails and social Network for things are not religious or politics means what ? you mast learn how to fight those peoples are against peace and security it doesn't Matter where report come from even ethnique menolities to grows Worldwide business and stock marketing , I don't do anythings at all with Belgium why if you see suspicion you don't ask them since I was in united kingdom I was in contacts with us Sony Music and others organisation you never had this , Thank you to take action , alias BrownLonardo

  17. M e G a B e A n says:

    Bro why is this so hard? TF DOES IT MEAN.

  18. FerdaFiv HourEnergy says:

    Explain it to me like I’m 3

  19. Kawser Latif says:

    Me: understands videos about astrophysics
    Also me: dosent understand this video

  20. Pranav Sridhar says:

    Screw you money
    Barter system was better

  21. John Trevino says:

    Should've explain dividends and other benefits

  22. Default Helper says:

    it's DAX

  23. HyperMangi says:


  24. TazWalvez The burrito says:

    I thought you were nice
    S o b s v i o l e n t l y .

  25. Yürüyen Ansiklopedi says:

    2:17 it reads Döner Inc. for a split second

  26. Pietro Maironi Da Ponte says:

    Not sure if stock exchange or devil worship 😂

  27. Smarteverything says:

    Could I buy shares in kurtgeazacht

  28. Eli Michaud says:

    this sucks

  29. EyedIce says:

    Question: Why was there no grass but ice?

  30. Boldizsár Bajnóczi says:

    This is a nonsense invented by bored capitalists who didn't know what to do with the virtual goods they used to demand better life for themselves. The only true way would be abolishing companies and creating Communist Anarchy.

  31. Haikal says:

    "For DuMiMes"
    Me: you underestimate my power
    *3:34 minutes later
    Me: …

  32. Dan Jefferies says:

    IT'S DAX

  33. BUSHy says:

    Basically. A tax for companies except you dont always loose money… right?

  34. sound wave6 says:

    Dummy to this🙋‍♀️

  35. Hussein Feyli says:

    When you already know this information but still watch for fun

  36. raviteja cheruvu says:

    Single vid ,is it enough?no?complete it?if u leave it means ytube is waste of info,ur material acquiring is also a fake..??one vid may not be convincing by,for the viewers?

  37. PrincipeP says:

    Gigi ascolta

  38. Arun Rojas says:

    Why company need share holder . I don't understand, let me consider that ,if you start Small business for your own money than you attained a break even point than you earn more money and than you go to further updates to your company, these process continue no need for share holder !!!!

  39. Arun Rojas says:

    I don't understand the concept plz answer me 🙂

  40. valenpresh says:

    Since i started trading i haven't seen a manager who impresses me like mr Denis law

  41. valenpresh says:

    Since i started trading i haven't seen a manager who impresses me like Mr Denis law

  42. Chris Keyz says:

    Lol each definition has a new word that you don't understand. Long cycle

  43. Ramos AZ says:

    Very educating but didnt start making profit in trading by watching videos …thanks to the help of burmah experts now I know what winning feels like

  44. Courtney Garman says:

    The market has been of immense success . I just starting making up to 155% and above in profit from my stock investments with my expert analyst and assets manager Mr Hurley Jordan

  45. Josh Calcano says:

    shits boring

  46. Kent Good says:

    Self trading is bad especially for inexperienced noobs, (complexities & risks). Pro tip, get an professional account manager/financial planner (Lucas Anders) and trade under his portfolio. That way your profit is ensured while you learn the ropes

  47. Ganter says:

    6M ppl think they r dummies😐
    and im with them 🙂

  48. Tudor_XD says:

    the anti comunist propanganda

  49. Jerome Barcenas says:

    Brief and exact explanation I needed.. Plsss

  50. cool guy mcDy says:

    I have dyscalculia so I'm not good with numbers and stuff so not sure if I would understand if I'd be doing it right anyone else have same problem Haha

  51. S M says:

    Trading in Stocks on the 5paisa app is amazing, use referral code 50709793 to open a free and completely paperless demat account, brokerage is 10 rupees flat on any order you any segment 😔😔💖🌷i did it

  52. Mike Huntervich says:

    That's amazin

  53. Michael Johnson says:

    This is glorious, I have been researching "historical stock market index values" for a while now, and I think this has helped. You ever tried – Fenason Zeyames Idea – (just google it ) ? Ive heard some extraordinary things about it and my neighbour got amazing success with it.

  54. Lynn maria says:

    Mr Patrick Brown has the best strategy in trading. he is an amazing stock exchange trader

  55. Austin Martín Hernández says:

    This explained nothing. What does it mean to have a "share" in the company?

  56. Nathaniel Duke says:

    All thanks to Mr Allen Brookes for ensuring the best investment for me in the stock market,experts like that are very hard to come bye…you could still contact him through his mail<<[email protected] com<<

  57. Ace The Mace Siyam says:

    Security ? You mean federal reserve notes or

  58. Natalia c says:

    I’ve watched like 200 videos on stocks and have yet to find one that explains who do you sell your stocks to…

  59. František Fojt says:

    €38 fb shares, lemme go back

  60. Vernon Schillinger says:

    But what the hell is NASDAQ?

  61. Sid Michael Fajardo says:

    So you have a video about forex?

  62. Brooke Zoe says:

    I've never had the thoughts of regrets in trading forex thanks to Mr Allen Brookes.

  63. Dorothy Isidro says:


  64. pilot constatinus says:


  65. madarauchiha says:

    No te distraigas Alexandra 🤣

  66. Hunter Gatherer says:

    What type of software do you use to create these type of graphics? How much is it and is it easy to use? Could anyone make videos similar to this easily? Cheers

  67. Kamelskih says:

    A huge pile of people receive money without producing any goods, or ulcers, nothing at all. Useless parasites.

  68. tsinoisullI Shcade says:

    S T O N K S !

  69. Horacio Murillo says:

    Tbh I expected more out of this, this is unfortunately information I already know.

  70. Dorothy Isidro says:

    📊 💱💲 economy

  71. snowy smiling says:

    2:17 easter egg. Taco inc changes to… idk… döner inc?

  72. Invictus says:

    Danke Mirko für die Infos

  73. Khubaib Abdullah says:

    Hence ,illuminati confirmed!!!

  74. Whisper says:


  75. B Sherman says:


  76. michael bayer says:

    … die Börse ist keine Eisenbahn – die zum Ein- und Aussteigen klingelt – Mr. Kostelany.

  77. Gary Tippin says:

    No birds no humor….?

  78. Bruce Aitken says:

    Remember when we used to buy shares in order to collect the dividends?

  79. Andre Borchardt says:

    Schade dass das Video nicht auf Deutsch ist das hätte ich auch mal eins und zwei Arbeitskollegen unter der Nase gehalten

  80. ThaSmashor says:

    Made in 2013, still professional videos. Good going, kursgesagt.

  81. ConnorConnor says:


  82. Zaynu Carrick says:

    Lately, YouTube has been translating the title of some videos, and in my mother tongue the title of this one says: how the stock market works(for dummies)

  83. AcromaticGaming - Minecraft & More says:

    S T O N K E X C H A N G E

  84. Hitori says:

    What is involved in starting your own crypto currency

  85. Bananappleboy World says:


  86. Daniel Decius says:

    I can't even be mad at the title for dummies, hell i still dont get this video

  87. Dakila Lozano says:

    did you say DAKS ahy sorry

  88. unoriginal name says:

    Don't you mean.


  89. anfal iqbal says:

    So stonks📈or📉

  90. Saibal Republic says:

    Watching this video while having a Pizza 🍕

  91. Better Tomorrow says:

    Hey, don’t call med dumb. I prefer less intillectual please

  92. TheArachnerd says:

    I understand more about quantum mechanics than the economy…

  93. S says:

    i still don’t understand dum it down ahha

  94. Soldier Of Truth says:

    Stock exchange is simply nothing more than a auction house. Where some insiders who agreed upon some hidden agendas will make you believe that a piece of toilet paper is worth more than a thousand dollars and they sell it to you for two thousand dollars while the demand goes up.
    Eventually they pull the trigger and the bubble blown and you came to know that you own a toilet paper. Who is the winner here? The elites make millions of dollars from scratch.
    My advice never invest your hardly earned money in stock market oherwise you can gamble.

  95. Karthago 146 says:

    Iam a Dummy. Thanks

  96. Very Punless says:


  97. Jae G says:

    GE brought me here

  98. Peter Müller says:

    Who watches this today and because of the bubble example looks up from when the video is


    And yes they bursted

  99. Cakey says:

    I'm disappointed the comment section isn't filled with "S t o n k s"

  100. Niggahunter498 says:

    Is this stonks?

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