What are stocks? Monkey want to start banana business but monkey need money to start banana business. Monkey not have money.
So monkey have idea. Monkey rob bank but this fails. So monkey ask rich monkeys for money to start banana business and in exchange rich monkeys get a small piece of the banana business.
This is called a stock. Buying banana stock makes rich monkeys partial owners of banana business. With this new money, monkey must resist urge to buy Lamborghini and instead invest in more banana trees to grow banana business, which means more profit.
Monkey investors also get profits from banana business. These are called dividends. Every monkey wins.
Stocks versus shares. Monkey used these words to describe same thing like how this is garbage and this is trash but stocks and shares are actually different. Shares are like little pieces of stock.
If stock is banana tree shares are bananas. The more banana stock monkey investor buy the more individual shares monkey receive the higher the percentage of banana business monkey own. Different types of stocks.
Just like monkeys, not all stocks are the same. Stocks from big monkey companies are more slow growing and reliable. Monkeys call these blue chip stocks.
Whereas smaller monkey startups are high risk, monkeys call these penny stocks. The stock market. This is where all monkey companies set up.
so that monkeys can buy and sell their stocks. When stock prices go up, monkeys call this a bull market. But if stock prices are going down, monkeys call this a bare market.
Basically, if there's a bull in the market, monkeys happy. Monkeys like bulls. But if there's a bear in the [Music] market, stock funds.
Much like monkeys on a cold night, some stocks crave the warmth of others. This is called a fund. A group of stocks like monkey SNP500 is made of the 500 largest monkey companies in the jungle.
They vary from fruit to bugs to trees, even Any monkey can invest in this fund. Monkeys that do invest get pieces or shares of all 500 companies. Most monkeys see this fund as good investment as it is low risk except when politician monkey gets involved.
Hedge funds. This is group of stocks that can make monkeys a lot more money but have higher risk of losing it. Hedge fund not for everyday monkey only rich monkeys can invest.
Funds become more valuable when the stocks in them become more valuable. But why do stock price change? Banana stock price can go up or it can go down.
This can be for many reasons. More demand for banana price go up. Banana business expanding, price go up.
Monkey eat all the bananas, price go down. Even news can change stock price like reports that monkeys are working on something super secret. If any monkey is confused, remember this very very important.
This video is not financial advice. Please do not sue monkey.
