financial district

How Does the Stock Exchange Work? A Guide For Dummies

What is the stock exchange? What are stocks?

We hear about it all the time in the news – this invisible market place selling a product that you can’t see or touch, but that can have a drastic effect on the economy and your day-to-day life.

It can make people rich and it can cripple companies. Yet despite its power and prominence, most average people struggle to wrap their heads around it.

The short video below uses friendly animation and plain English to explain exactly what the stock exchange is and how it works.

The film in produced by the YouTube channel Kurzgesagt (a German word that roughly translates to “in short” or “in a nutshell”). If you get a chance, be sure check out their other other videos to learn more about science, philosophy, society and more facts you didn’t know you needed in your life!

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