301- Phil and Danielle Answer Fans Questions!
b'Are you one of the winners of the InvestED 300th podcast episode giveaway? Listen to this podcast to find out!\\xa0\\n\\nInvesting in stocks is one of the best things you can do to set yourself up financially, but you have to first understand the company valuation process in order to actually make money.\\n\\nWhen a company decides to go public, an investment bank helps determine what the price of the company\\u2019s stock should be at their Initial Public Offering (IPO), when they become available to purchase on the stock exchange. They determine the initial price based on the value of the company and early interest from investors before the stock is available to the public.\\xa0\\n\\nAfter the company goes public, the stock price is based on supply and demand. When the demand for a stock goes up, its price goes up. The demand can increase if the company is doing extremely well and its value is increasing, or it can increase simply because of excitement from other investors.\\xa0\\n\\nIt\\u2019s important to remember to not get the \\u201cvalue of the company\\u201d confused with the \\u201cprice of the stock.\\u201d The market can be incredibly emotional and price a great company way under their true value and vice versa. Ultimately, the stock price is determined by greed when the stock price is going up and fear when the stock price is going down.\\n\\nThis is why it\\u2019s important to invest with certainty within your circle of competence. Love what you own, and put your money where your values are. Most of us have the intention to make the world a better place, but seem to forget that the businesses that they invest in have a direct impact on what is going to exist in the world in 10-20 years.\\n\\nIn today\\u2019s podcast, Phil and Danielle announce the winners of the InvestED 300th podcast episode giveaway and discuss rational investing in 2021.\\n\\nLearn more about using your Circle of Competence to pick stocks with my 3 Circles Exercise Guide. Click here to get started: http://bit.ly/3pn4Bgj\\nLearn more about your ad choices. Visit megaphone.fm/adchoices'