IFB44: Back to the Basics Pt 2: Share Dilution on Wall Street




The Investing for Beginners Podcast - Your Path to Financial Freedom show

Summary: This is part 2 of the 5 episode “Back to the Basics” series from <a href="https://itunes.apple.com/us/podcast/investing-for-beginners-podcast-your-path-to-financial/id1210741497?mt=2">The Investing for Beginners Podcast</a>. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time.<br> Here are the links to each of the episodes:<br> <a href="https://einvestingforbeginners.com/stocks-and-shares/">Back to the Basics Pt 1: The Anatomy of Stocks and Shares</a><br> –Defining what a stock is<br> –Talk about the big 3: the cash flow statement, balance sheet, and income statement<br> –Earnings manipulation<br> <a href="https://einvestingforbeginners.com/share-dilution/">Back to the Basics Pt 2: Share Dilution on Wall Street</a><br> –What is a stock<br> –What are stock buybacks and how they affect us<br> –What are share dilutions<br> –What happens when we buy or sell a stock<br> <a href="https://einvestingforbeginners.com/other-investments/">Back to the Basics Pt 3: Stocks vs Other Investments</a><br> –Peer to peer lending<br> –Real Estate<br> –Gold and other precious metals<br> –Bitcoin and other cryptocurrencies<br> –Bonds<br> <a href="https://einvestingforbeginners.com/investing-101/">Back to the Basics Pt 4: Investing 101 and Compound Interest</a><br> –The importance of buy and hold<br> –Compound interest and how it can make you wealthy<br> –Using a compound interest calculator<br> –The power of dollar cost averaging<br> <a href="https://einvestingforbeginners.com/dividend-stocks/">Back to the Basics Pt 5: Dividend Stocks and Value Investing</a><br> –The advantages of buying low and selling high<br> –Dividends and the power of compounding<br> <br> Welcome to the Investing for Beginners podcast this is episode 44. Andrew and I are going to continue our discussion on back to the basics with the stock market and last week we talked a little bit about stocks and today we’re going to talk some more about stocks.  Because you know that’s our favorite thing to talk about besides that baseball and so without any further ado Andrew ahead something you wanted to say as we got started.<br> <br> * What is a stock<br> * What are stock buybacks and how they affect us<br> * What are share dilutions<br> * What happens when we buy or sell a stock<br> <br> Andrew: yeah so obviously last week I had a big thing about you know how shares kind of work and the whole premise behind the stock market. Behind why Wall Street’s there what the value is and how it provides value for really the whole world and how we can take part in that.<br> I think the next thing that we should really cover is how that applies to Wall Street today so obviously Wall Street’s very intimidating and it can seem like if you don’t have a double-double MBA and in finance that there’s no way that you can really have a shot at understanding it and making it work for you, and that’s so far from the truth and everything we try to do with this podcast is really to try to alleviate that and especially with this series that we’ve come up with here with going back to the basics.<br> We’re really hoping when you can go from just the average person who might not know anything and really start to put some of the pieces together and use that momentum and it can really take you in some far places and so it was really exciting to be kind of a part of that so with the whole discussion last week I talked about how company issues shares and how they can use those share you know they can essentially it’s called raise capital you hear this a lot in Silicon Valley and yeah you know on Shark Tank and with private equity it’s really a place for companies to incubate and get a jump start and go from either they’ll go from nothing to something with a great idea...