Stock Market Terminology every Investor MUST KNOW! – Part 3

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Good day subscribers thank you so much for joining me today i am jeremy this is a financial education channel and today we are on part three of stock market terminology so today i am trying to keep all the terms similar and i think i’m gonna try to do that for future videos so we’ll make it that much easier where all the terms are going to be somewhat similarly

Related so let’s go ahead and get right into this the first term we have today is the new york stock exchange the new york stock exchange is the biggest exchange in the entire world like over 14 billion dollars worth of valued companies all trade on the new york stock exchange which is obviously located in new york city it’s the oldest exchange also in new york

City and for a fun fact if you’ve ever watched like movies from the 70s or 80s or 90s that take place on the new york stock exchange you’ll see there’s tons of traders trading stocks and they have these physical papers and things like that it’s real fun to see versus seeing it today where it’s basically almost like a museum there’s not much going on on the floor

There’s like cnbc and business channels and whatnot to actually have sets right on the floor because there’s hardly anybody even down there because trading nowadays is all done electronically all that piece of paper rate this down here you know if i would just share this company and give it to the guy that really doesn’t exist anymore so new york stock exchange

That’s what that is dow jones we’re talking about the dow jones 30 that is the 30 biggest companies in the pretty much the entire market now unfortunately the down 30 doesn’t change very often it changes maybe once a year once every other years for stocks getting kicked out and the new stocks coming in so but it’s the 30 biggest companies put together and then

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Index together and that can give you a perception on how the biggest companies in the world are doing for that trading day so when somebody says oh the dow was down 100 points today i saw oh the dow was up 200 points today i saw they’re talking about the 30 biggest companies and how they trade it and for whatever reason that’s kind of becoming the dex of how the

Stock market’s doing in general so i for right or wrong it’s only the 30 biggest companies in their thousands and thousands of companies traded on the public markets so the rest of the companies could be doing great and those ones could be doing bad and unless you’re invested in those biggest companies you wouldn’t even feel the effects next one up we have the smp

500 the s&p 500 is an index of stocks put together but it’s the 500 biggest companies this index i actually look at more and i think it’s more important because you’re talking about 500 companies and also the snp is almost updated every month so if a company you know trades off and trades off they go we’ll end up getting kicked out of the s&p 500 and a new

Stock comes in so the s&p 500 actually look at more to see how the stock market is doing in general 500 biggest companies in america all put together or at least traded on the american stock exchange’s next up we have nasdaq the nasdaq has become the second largest stock exchange in the entire world now now on the nasdaq a lot of i would say tech companies trade

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On the nasdaq so second largest in the world i think it’s over ten billion in valuation now is traded on the nasdaq the foot see is the britain stock exchange so that’s kind of what the nysc is to america the footsie is to britain it’s their largest stock exchange so ftse the foot see that’s the britain stock exchange we have the decks now the dax is the is kind

Of known as almost like the german stock exchange but it’s the thirty biggest companies in germany index together so in that respect it’s almost like the dow jones 30 that we just talked about where it’s america’s 30 biggest companies index together the dax is a german germany’s 30 biggest companies all indexed together the cac 40 is france’s 40 biggest companies

All indexed together that’s what the cac 40 is french france’s biggest 40 companies all indexed together we have shanghai which is an index for all stocks traded on the shanghai exchange which deals mostly just with chinese stocks so it’s all them put together they’re all index together it’s not like oh just for 30 babies or 500 biggest it’s every single one of

Them that trades on a shanghai all index together the nikkei the nikkei 225 let’s well the nikkei in itself that’s like the japanese stock exchange but the nikkei 225 that’s to 225 biggest companies in japan all index together why they pick 225 who knows but you’ll notice you know a lot of countries they have different like indexes all here it’s like the 30 biggest

Here it’s a 500 biggest here it’s a 40 here’s 225 it’s a lot of different but nikkei 225 that’s japan’s 225 biggest companies all index together in the last word we’re going over today is actually indexes so if somebody says hey how do the indexes do today or sometimes i say how do the indices do today something like that that means how did the markets trade how’d

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The stock market trade were they up were they down so that’s that’s what that means and like if somebody says i want to buy an index fund that means it’s basically a reflection of what the stock market is so whatever the index fund goes down or up it’s whatever the stock market’s going down or up that day so when someone says hey how’d the indexes do today now you

Can say oh you know they went uh looks like they went up today oh they went down today that’s what that means anyways i hope this helped today guys ten more terms we’re not going to mount one week at a time until we get to that super advanced stuff which i’m looking very forward to at that time i might have to cut it down to five terms because on the very advanced

Stuff it’s not like i can just tell you it real simple like this i actually might have to break it down and go on the board and things like that we’ll see when that time comes it’s a long time away anyways thank you so much for watching guys if you haven’t subscribed you may want to talk a ton about personal finance talk ton about business and i talk a lot a lot

A lot about the stock market investments and i do this every week series covering stock market terminology you need to know thank you guys and have a great day

Transcribed from video
Stock Market Terminology every Investor MUST KNOW! – Part 3 By Financial Education

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