The idea
A stock's price isn't set by the company — it's set by buyers and sellers, just like trading cards. When good news makes lots of people want to buy, the price goes up. When scary news makes people want to sell, it goes down. So prices move on what people believe will happen next. 📈
Words to know
- Demand
- How many people want to buy something — more demand usually pushes the price up.
- Earnings day
- The day a company reports how much money it made — prices often jump or drop after.
- Guidance
- A company's own guess about how it will do next — investors care a lot about it.
- Priced in
- When news everyone already expected is built into the price, so the stock barely moves when it's announced.
Try it — no account needed
Each card is news about a company. Swipe RIGHT if the stock would likely go UP, LEFT if it would go DOWN.
Card 1 of 5
Tesla reported record car deliveries this quarter.
In the full lesson
- 1True or false
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
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