Friends That Invest

Part 1: What’s the Stock Market and How to Get Started

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Sep 2, 2020
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ANECDOTE

Lemonade Stand Analogy

  • Sim uses a lemonade stand analogy to explain the stock market.
  • It illustrates how stocks are created, bought, and sold, simplifying a complex concept.
INSIGHT

NYSE Origin

  • The New York Stock Exchange originated from merchants trading company stocks under a buttonwood tree in the 18th century.
  • This marketplace on Wall Street evolved into the physical exchange we see in movies.
INSIGHT

Making Money from Stocks

  • Investors buy stocks hoping their value will increase (capital gains) or to receive dividend payments.
  • Dividends are a share of company profits distributed to shareholders as a thank you.
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