PPP018: All You Need to Know about the Stock Market - Personal Profitability Podcast

Today we take a deep look into the stock market. Where it came from, how it developed, and how it works today. Learn how to open your first investment account and trade stocks for free. Resources Mentioned * How the Stock Market Works * Loyal3 - Trade stocks for free! Full Transcript Eric Rosenberg: Ladies and gentlemen, boys and girls, children of all ages, welcome back to the Personal Profitability Podcast. I’m thrilled to have you back. And today I want to talk to you about a topic that is near and dear to my heart personally. It’s something that I thought I might have wanted to do as a career at one point, it’s a huge part of my education – that is the stock market and investing in general. I want to talk more about stocks and individual stocks and how that works because those are the foundations that mutual funds and other investments are often built on. We’re gonna do a Back to Basics type of episode focusing on the stock market. I just made today a no guest; we’ve had some great guests lately. And today I just to have a one on one time hanging out with you. And as happens on occasion, and I like to say, finance should be fun so I’m recording this one on a Saturday afternoon, actually early evening about 4o’clock on a Saturday. As I like to do on occasion, particularly after dinner, but hey, why not on a Saturday afternoon. I’m having a little drink. This one is not my typical brewsky, I’m having a 12-year Glenlivet, it’s one of my favorite scotches, with one of those round ice balls. If you’ve ever seen one and you like scotch, definitely check that out. If you Google ‘scotch ice ball’, you’ll find it. So, I’m lifting my glass. If you are able to join me in a drink, here’s your opportunity to pause, go fill up, grab whatever you’d like to join me with. If you’re driving a car obviously or at work, you probably shouldn’t be drinking. But otherwise here is your pause point. Alright, welcome back. So here is a cheers if you have your drink. I’m holding in my 12 year old scotch so, L’Chaim as we say in Hebrew. That’s definitely one of my favorites. It’s smooth, it’s good. You know I always like the 18 year a little bit better but obviously I don’t want to spend for an 18 year; it’s an expensive bottle, so I’m having the twelve. Anyway, back to the stock market. So the stock market is probably the most well-known place to invest. It’s been very glamorized by Hollywood. It looks fastpaced and exciting, millions of dollars made and lost every minute. It’s this huge fast paced world. A lot of people are intimidated when they are getting started. Once you really understand how it works and have a good grasp on that you will understand there’s no reason to be afraid of investing in the stock market or anywhere else. You should be investing in the markets. That’s where you get most of your capital gains for any kind of investment. The two big ones that I’ve seen people do are generally either stock market or real estate. Those are the ways most people do it. You could also build and start your own business, something that I always encouraged. But for the money that you’ve already brought in, what do you do to grow it? You invest it. Those are my top two favorite places - real estate and the stock market. So today let’s talk about, let’s start with the history of the New York Stock Exchange. I want to go way back in time. Picture yourself in New York City on May 17, 1972. That is the day the New York Stock Exchange came to be. Prior to that, everything was done very informally. If you wanted to buy or sell an ownership stake in a company, you’d have stock certificates in old paper documents; this is the 1700s.