[Script Info]
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[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:03.48,Default,,0000,0000,0000,,What is the Stock Exchange \Nand how does it work?
Dialogue: 0,0:00:03.63,0:00:07.21,Default,,0000,0000,0000,,The Stock Exchange is nothing more \Nthan a giant globally network
Dialogue: 0,0:00:07.21,0:00:14.10,Default,,0000,0000,0000,,tend to organize the market place where every day \Nhuge sums of money are moved back and forth.
Dialogue: 0,0:00:14.30,0:00:19.07,Default,,0000,0000,0000,,In total over sixty trillion (60,000,000,000,000) \NEuros a year are traded.
Dialogue: 0,0:00:19.07,0:00:23.80,Default,,0000,0000,0000,,More than the value of all goods and services \Nof the entire world economy.
Dialogue: 0,0:00:24.61,0:00:29.98,Default,,0000,0000,0000,,However it's not apples or second hand \Ntoothbrushes that are traded on this marketplace.
Dialogue: 0,0:00:29.98,0:00:32.61,Default,,0000,0000,0000,,But predominantly securities.
Dialogue: 0,0:00:32.61,0:00:36.92,Default,,0000,0000,0000,,Securities are rights to assets, \Nmostly in the form of shares.
Dialogue: 0,0:00:36.92,0:00:39.70,Default,,0000,0000,0000,,A share stands for \Na share in a company.
Dialogue: 0,0:00:40.17,0:00:42.98,Default,,0000,0000,0000,,But why are shares traded at all?
Dialogue: 0,0:00:43.20,0:00:47.66,Default,,0000,0000,0000,,Well, first and foremost the value of a share \Nrelates to the company behind it.
Dialogue: 0,0:00:47.66,0:00:50.77,Default,,0000,0000,0000,,If you think the value of \Na company in terms of a pizza.
Dialogue: 0,0:00:50.77,0:00:54.79,Default,,0000,0000,0000,,The bigger the overal size of the pizza, \Nthe bigger every piece is.
Dialogue: 0,0:00:55.40,0:00:59.90,Default,,0000,0000,0000,,If for example Facebook is able to greatly \Nincrease its profits with a new business model.
Dialogue: 0,0:00:59.93,0:01:05.81,Default,,0000,0000,0000,,The size of the companies pizza will also increase, \Nand as a result so will the value of its shares.
Dialogue: 0,0:01:06.14,0:01:09.00,Default,,0000,0000,0000,,This is of course great for the shareholders.
Dialogue: 0,0:01:09.00,0:01:15.18,Default,,0000,0000,0000,,A share which perhaps used to be worth 38 euros \Ncould now be worth a whole 50 euros.
Dialogue: 0,0:01:15.18,0:01:19.21,Default,,0000,0000,0000,,When it's sold this represents \Na profit of twelve euro per share!
Dialogue: 0,0:01:19.21,0:01:21.61,Default,,0000,0000,0000,,But what does Facebook gain from this?
Dialogue: 0,0:01:21.65,0:01:26.50,Default,,0000,0000,0000,,The company can raise funds by selling \Nthe shares and invest or expand its business.
Dialogue: 0,0:01:27.17,0:01:32.39,Default,,0000,0000,0000,,Facebook, for example, has earned sixteen billion \Ndollars from its listing on the Stock Exchange.
Dialogue: 0,0:01:32.39,0:01:35.89,Default,,0000,0000,0000,,The trading of shares though, \Nis frequently a game of chance.
Dialogue: 0,0:01:35.89,0:01:39.51,Default,,0000,0000,0000,,No one can say which company \Nwill preform well and which will not.
Dialogue: 0,0:01:39.82,0:01:43.66,Default,,0000,0000,0000,,If a company has a good reputation, \Ninvestors will back it.
Dialogue: 0,0:01:43.66,0:01:48.63,Default,,0000,0000,0000,,A company with a poor reputation or poor \Nperformance will have difficulty selling its shares.
Dialogue: 0,0:01:49.87,0:01:53.27,Default,,0000,0000,0000,,Unlike a normal market in which goods \Ncan be touched and taken home
Dialogue: 0,0:01:53.27,0:01:56.77,Default,,0000,0000,0000,,on the Stock Exchange only \Nvirtual goods are available.
Dialogue: 0,0:01:57.94,0:02:01.87,Default,,0000,0000,0000,,They appear in the form of share prices \Nand tables on monitors.
Dialogue: 0,0:02:01.87,0:02:05.18,Default,,0000,0000,0000,,Such shareprices can rise \Nor fall within seconds.
Dialogue: 0,0:02:05.18,0:02:09.56,Default,,0000,0000,0000,,Shareholders therefore have to act quickly \Nin order not to miss an opportunity.
Dialogue: 0,0:02:09.78,0:02:15.82,Default,,0000,0000,0000,,Even a simple rumor can result in the demand for \Na share falling fast
Dialogue: 0,0:02:16.18,0:02:17.18,Default,,0000,0000,0000,,regardless of the real value of the company.
Dialogue: 0,0:02:17.54,0:02:20.13,Default,,0000,0000,0000,,Of course the opposite is also possible.
Dialogue: 0,0:02:20.13,0:02:23.11,Default,,0000,0000,0000,,If a particularly large number\Nof people buy weak shares.
Dialogue: 0,0:02:23.11,0:02:26.11,Default,,0000,0000,0000,,Because if they see for example \Ngreat potential behind an idea.
Dialogue: 0,0:02:26.11,0:02:28.28,Default,,0000,0000,0000,,Their value will rise as a result.
Dialogue: 0,0:02:28.28,0:02:31.26,Default,,0000,0000,0000,,In particular young companies \Ncan benefit from this.
Dialogue: 0,0:02:31.26,0:02:36.87,Default,,0000,0000,0000,,Even though their sales might be falling, \Nthey can generate cash by placing their shares.
Dialogue: 0,0:02:37.82,0:02:42.24,Default,,0000,0000,0000,,In the best case scenario this will result in \Ntheir idea being turned into reality.
Dialogue: 0,0:02:42.46,0:02:48.02,Default,,0000,0000,0000,,In the worst case scenario, this will result in a \Nspeculative bubble with nothing more than hot air.
Dialogue: 0,0:02:48.02,0:02:51.94,Default,,0000,0000,0000,,And as the case with bubbles, \Nat some point, they will burst.
Dialogue: 0,0:02:51.94,0:02:57.59,Default,,0000,0000,0000,,The value of Germany's biggest thirty companies \Nis summarized in what is known as the DAX share index.
Dialogue: 0,0:02:59.08,0:03:02.28,Default,,0000,0000,0000,,The DAX shows how well or poorly \Nthese major companies
Dialogue: 0,0:03:02.28,0:03:06.74,Default,,0000,0000,0000,,and there by the economy as a whole \Nare performing at the present time.
Dialogue: 0,0:03:07.95,0:03:11.53,Default,,0000,0000,0000,,Stock Exchange is in other countries \Nalso have there own indices.
Dialogue: 0,0:03:11.53,0:03:16.62,Default,,0000,0000,0000,,And all of these markets together \Ncreate a globally networked marketplace.