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Million Bazillion, What is the stock market? (2)

What is the stock market? (2)

PICKUP BRIDGET: My turn again? The sales were so strong that it turned out to be one of the best seasons in its history. Plus! It turns out the company was fully insured against giant badger attacks, so they got money from the insurance company to rebuild. More people than ever wanted to own a piece of the company. Now you could sell your shares for $25 each and people would buy it!

PIPER: But then a 60-foot-tall lizard -- which the company wasn't insured against -- destroyed all the company's delivery trucks. The stock price dropped down to $10 a share.

JED: You are quite the chaos agent. Ok, things looked really bad for the scrappy shoe company. But then, one of the scientists working there figured out why so many humongous creatures kept showing up. It turns out, a new shoe they were developing accidentally gave whoever wore them psychic powers. And one of the kid shoe testers kept calling monstrous animals for. some. reason!

PIPER: (chuckles menacingly)

VISHNU: And then everyone wanted psychic powers, so people started lining up to buy the shoes.

PICKUP BRIDGET: And since the company was the only place where you could get them, everyone believed it was going to be hugely successful for a long time. People were willing to pay like, a thousand dollars apiece for its shares. And I think we're going to have to stop there, because Jed, your marshmallows are on fire!

(SFX - RAGING INFERNO)

JED: It's ok. I prefer it when they're burnt. But um... maybe get the fire extinguisher… Ok, scouts, what have we learned?

VISHNU: Stock prices go up and down based on how people feel about a company and how it's doing.

JED: Very good. Anything else?

PIPER: You should not be in charge of cooking.

JED: Excellent. Merit badges all around. Where's Bridget and that fire extinguisher?

BRIDGET: Heads up!

(SFX - FIRE EXTINGUISHER AND JED EXCLAMATIONS AT BEING SPRAYED)

[INTERSTITIAL]

BRIDGET: All right, gang, looks like we've finished up the Bazillionaire's Bounty -- which is a little surprising. (SFX - RATTLING AN EMPTY CARDBOARD BOX) We brought a lot of ingredients…

JED: (groaning)

VISHNU: What's wrong with Camp Emperor Jed?

PIPER: He ate that entire super-sized smore he made.

JED: (groaning) Ohhh, so many... marshmallows…

PIPER: Looks like he's gonna Bazillionaire blow chunks.

BRIDGET: All right, give him some space.

JED: I'm fine. I'm fine. In fact, I did this on purpose -- to teach you scouts a very important lesson. And that is (BURP) never underestimate something that's a lot bigger than you are.

BRIDGET: (to herself) Yeah, or don't put three bars of chocolate in your mouth at one time…

JED: And to further illustrate my point, I have a story. It involves the stock market. Be warned: it's a little frightening.

VISHNU AND PIPER: Ooh! All right!

JED: It's called “Aurelia and the Bear.”

(MUSIC BEGINS - LIGHTHEARTED)

PICKUP JED: Aurelia was a young woman who was always looking for clever ways to invest.

Aurelia: I've gotta be smart

JED: One day, Aurelia was researching some companies whose stock she was thinking of buying. That's when her big gigantic brain noticed something.

AURELIA: Wait a minute! There's a pattern here. Let me check the records… (SFX BOOKS THUMPING AND PAGES TURNING)

JED: Lots of people who invest in the stock market try to make money by buying shares when prices are low and then selling them when prices go higher. Like if you bought a share for 1 dollar and then it went up to 2 dollars -- and you sold it. You just doubled your money! However, it's really hard to predict what prices are going to do.

AURELIA: Aha!

PICKUP JED: But Aurelia, she saw a pattern in the way stock prices went up and down. It was a pattern no one else saw. And she could use that to buy and sell stocks and make a whole lot of money.

AURELIA: I mean, if I'm right, I'm going to make bank!

JED: So Aurelia started buying shares. And just like she predicted using her method, the prices of the shares she bought soon went up.

AURELIA: I'm a genius! I'm gonna buy a lot more shares. It is looking like a bull market!

VISHNU: A bull? What does that mean?

JED: Well, in the animal kingdom, a bull is a male cow. (SFX BULL BELLOW) But when you're talking about the stock market, a bull market is the nickname stock traders use when more people are buying stocks, and that pushes prices up overall. (SFX DING DING DING) Aurelia put more and more of her money into her favorite stocks because she thought the stock prices would keep going up and up.

AURELIA: Flying cars, sure, I'm bullish on that. Electric sandwiches? Pass. Ooh, but flying electric cars delivering sandwiches? Major super bullish!

JED: Aurelia was making money fast, and she was convinced she'd figured this whole stock thing out. But that was her mistake... the stock market is big and complex with lots of moving parts. She had focused on a few companies' stocks and jumped to a conclusion -- and while she did see a pattern -- it was only part of the bigger picture. It's like she saw thick black hair, two white horns -- and thought, “It's a bull!”

AURELIA: Buy! Buy! Buy!

JED: But you know those illusions where you're looking at something really close, and it looks like one thing, but then when you step back it's something entirely different? If she'd been able to step back and see the bigger picture, she would've realized that the black hair and white horns weren't on a bull. She was, in fact, looking at the fur and teeth of a massive bear.

(SFX BEAR ROAR)

JED: In the stock market, a bear market is the opposite of a bull market. In a bear market - traders think prices are going down and are going to stay down. So lots of people try to sell and sell, and prices overall drop. And markets can turn from bulls to bears pretty quickly - meaning people can lose lots of money real quick.

AURELIA: Wait, what's going on? Why are my stock prices falling? My money!

JED: And this was no baby bear market. Not even a cranky mama bear protecting her cub. No, this was a porridge-too-hot, bed-too-hard, angry Papa Bear-market. And it was bent on ripping into her stocks like they were a picnic basket full of cake.

(SFX BEAR ROARING AND DESTROYING CARS AND WINDOWS)

JED: Prices of stocks everywhere went down -- including Aurelia's, and in the aftermath, Aurelia realized she'd lost everything.

PIPER: What happened to her?

PICKUP JED: She had to start over. And the next time she invested her money, she would do it a little more wisely and a lot more carefully. The end.

(SFX CRACKLING FIRE FOR A SECOND OR TWO)

VISHNU: Why did they choose “bull” and “bear” to represent the stock market?

JED: I don't know. Maybe they just liked animals that start with the letter “B”.

PIPER: They should've picked “barracuda.” That's cooler.

VISHNU: Or “Blue Whale.”

JED: Heh, yeah… What other “B” animals are there?

BRIDGET: Badger.

JED: Badger?!! Where?! Auuugghhh!!! Run for your lives! It's a badger! (SFX - RUNNING AWAY THROUGH THE WOODS)

BRIDGET: Well, he's sleeping in a tree tonight.

---KIDS HAVE A SAY HERE---

BRIDGET: Before we pack up this campsite, here are some final thoughts about what we learned today. Sure, the stock market can SEEM confusing...and sometimes, it is. There are lots of words that are difficult to understand, or jargon. It's not always clear why the stock market acts the way it does.

PICKUP JED: And actually, only about half of Americans even own shares. But it's worth understanding how and why the stock market works. It's a way that some people can grow their money, but you can also lose money - so it's not without risk. So keep on asking those questions about the stock market or anything else. We'll be waiting for them.

---CLOSE---

BRIDGET: Thanks for listening to Million Bazillion -- where we help dollars make more sense. We'll be back next week with an all new episode. If you have an idea for an episode or a question you want answered, email us at Marketplace dot org slash million.

JED: And if you want new episodes of Million Bazillion sent to your email inbox each week...along with bonus content like a tip sheet, a quiz, and cool comics. Sign up Marketplace dot org slash BONUS.

BRIDGET: Special thanks to professor Ashleigh Eldemire Poindexter at the University of Tennessee Knoxville for helping us understand the answer to this question...to our colleagues at Marketplace who offered ideas and insights along the way. And thanks to Kimberly Adams, Marissa Cabrera, Marque Green, Meghan McCarty Carino, Daisy Palacios, Jeff Peters, Lianna Squillace, Vishnu, and Piper,...for lending us their voices for this episode.

JED: Million Bazillion is brought to you by Marketplace in collaboration with Brains On! And American Public Media.

I'm your host, Jed Kim…

The senior producer is my co-host, Bridget Bodnar

Marissa Cabrera is our producer.

Sanden Totten is our editor.

BRIDGET: Chris Julin is our sound designer.

Our theme music was created by Wonderly.

This episode was mixed by Bekah Wineman.

Our digital team includes Erica Phillips and Tony Wagner.

Sitara Nieves is the Executive Director of On Demand at Marketplace.

JED: And special thanks to the people who provided the startup funding for Million Bazillion, and who continue to help keep us going: The Ranzetta Family Charitable Fund and Next Gen Personal Finance, supporting Marketplace's work to make younger audiences smarter about the economy.

BRIDGET: To all the grown-ups listening right now – we hope that you and the kids in your life are having some good conversations about money thanks to Million Bazillion. We created this podcast to help kids get an early start on learning about the economy – and to keep it going, we're counting on your support. Donate today at marketplace-dot-org-slash-givemillion, and thanks for chipping in to make our work possible.


What is the stock market? (2) O que é o mercado de ações? (2)

PICKUP BRIDGET: My turn again? PICKUP BRIDGET: Minha vez de novo? The sales were so strong that it turned out to be one of the best seasons in its history. As vendas foram tão fortes que acabou sendo uma das melhores temporadas de sua história. Doanh số bán hàng cao đến mức nó hóa ra là một trong những mùa tốt nhất trong lịch sử của nó. Plus! Mais! Thêm! It turns out the company was fully insured against giant badger attacks, so they got money from the insurance company to rebuild. Acontece que a empresa estava totalmente segurada contra ataques de texugos gigantes, então eles conseguiram dinheiro da companhia de seguros para reconstruir. Оказывается, компания была полностью застрахована от нападения гигантских барсуков, поэтому они получили деньги от страховой компании на восстановление. Hóa ra công ty đã được bảo hiểm đầy đủ trước các cuộc tấn công của con lửng khổng lồ, vì vậy họ đã nhận được tiền từ công ty bảo hiểm để xây dựng lại. More people than ever wanted to own a piece of the company. Mais pessoas do que nunca queriam possuir um pedaço da empresa. Now you could sell your shares for $25 each and people would buy it! Agora você poderia vender suas ações por $25 cada e as pessoas iriam comprá-las!

PIPER: But then a 60-foot-tall lizard -- which the company wasn't insured against -- destroyed all the company's delivery trucks. パイパー:しかし、その後、会社が保険をかけられていなかった高さ60フィートのトカゲが、会社のすべての配達用トラックを破壊しました。 PIPER: Mas então um lagarto de 18 metros de altura - contra o qual a empresa não tinha seguro - destruiu todos os caminhões de entrega da empresa. ПАЙПЕР: Но затем 60-футовая ящерица, от которой компания не была застрахована, уничтожила все грузовики компании. PIPER: Nhưng sau đó một con thằn lằn cao 60 foot - mà công ty không được bảo hiểm - đã phá hủy tất cả các xe tải giao hàng của công ty. The stock price dropped down to $10 a share.

JED: You are quite the chaos agent. JED:あなたはかなり混沌としたエージェントです。 JED: Você é um verdadeiro agente do caos. JED: Bạn là một tác nhân gây hỗn loạn. Ok, things looked really bad for the scrappy shoe company. Ok, as coisas pareciam muito ruins para a empresa de calçados. Хорошо, дела обувной компании выглядели очень плохо. But then, one of the scientists working there figured out why so many humongous creatures kept showing up. Mas então, um dos cientistas que trabalhavam lá descobriu por que tantas criaturas gigantescas continuavam aparecendo. Но затем один из ученых, работавших там, понял, почему продолжает появляться так много огромных существ. Nhưng sau đó, một trong những nhà khoa học làm việc tại đó đã tìm ra lý do tại sao rất nhiều sinh vật hình người cứ xuất hiện. It turns out, a new shoe they were developing accidentally gave whoever wore them psychic powers. Acontece que um novo sapato que eles estavam desenvolvendo acidentalmente deu poderes psíquicos a quem os usava. Оказывается, новая обувь, которую они разрабатывали, случайно наделила того, кто их носил, экстрасенсорными способностями. Hóa ra, một đôi giày mới mà họ đang phát triển đã vô tình ban cho bất cứ ai mang chúng sức mạnh tâm linh. And one of the kid shoe testers kept calling monstrous animals for. E um dos testadores de sapatos infantis ficava chamando de animais monstruosos. И один из тестировщиков детской обуви продолжал призывать чудовищных животных. some. reason!

PIPER: (chuckles menacingly)

VISHNU: And then everyone wanted psychic powers, so people started lining up to buy the shoes. VISHNU: E então todos queriam poderes psíquicos, então as pessoas começaram a fazer fila para comprar os sapatos.

PICKUP BRIDGET: And since the company was the only place where you could get them, everyone believed it was going to be hugely successful for a long time. PICKUP BRIDGET: E como a empresa era o único lugar onde você poderia obtê-los, todos acreditavam que seria um enorme sucesso por um longo tempo. ПИКАП БРИДЖЕТ: И поскольку компания была единственным местом, где их можно было достать, все верили, что она будет иметь огромный успех в течение долгого времени. People were willing to pay like, a thousand dollars apiece for its shares. As pessoas estavam dispostas a pagar mil dólares cada uma por suas ações. Люди были готовы платить по тысяче долларов за его акции. And I think we're going to have to stop there, because Jed, your marshmallows are on fire! E acho que vamos ter que parar por aí, porque Jed, seus marshmallows estão pegando fogo!

(SFX - RAGING INFERNO) (SFX - БЕШУЩИЙ АД)

JED: It's ok. I prefer it when they're burnt. But um... maybe get the fire extinguisher… Ok, scouts, what have we learned? Mas hum... talvez pegue o extintor de incêndio... Ok, batedores, o que aprendemos?

VISHNU: Stock prices go up and down based on how people feel about a company and how it's doing. ВИШНУ: Цены на акции растут и падают в зависимости от того, как люди относятся к компании и как она работает.

JED: Very good. Anything else?

PIPER: You should not be in charge of cooking. PIPER: Você não deveria se encarregar de cozinhar. ПАЙПЕР: Ты не должен отвечать за приготовление пищи.

JED: Excellent. Merit badges all around. Where's Bridget and that fire extinguisher?

BRIDGET: Heads up!

(SFX - FIRE EXTINGUISHER AND JED EXCLAMATIONS AT BEING SPRAYED) (SFX — ОГНЕТУШИТЕЛЬ И ВОСКЛИКИ ДЖЕДА ПРИ РАСПЫЛЕНИИ)

[INTERSTITIAL]

BRIDGET: All right, gang, looks like we've finished up the Bazillionaire's Bounty -- which is a little surprising. (SFX - RATTLING AN EMPTY CARDBOARD BOX) We brought a lot of ingredients…

JED: (groaning)

VISHNU: What's wrong with Camp Emperor Jed?

PIPER: He ate that entire super-sized smore he made.

JED: (groaning) Ohhh, so many... marshmallows…

PIPER: Looks like he's gonna Bazillionaire blow chunks. ПАЙПЕР: Похоже, он собирается стать базиллионером.

BRIDGET: All right, give him some space.

JED: I'm fine. I'm fine. In fact, I did this on purpose -- to teach you scouts a very important lesson. And that is (BURP) never underestimate something that's a lot bigger than you are. И это (BURP) никогда не недооценивайте то, что намного больше, чем вы есть.

BRIDGET: (to herself) Yeah, or don't put three bars of chocolate in your mouth at one time…

JED: And to further illustrate my point, I have a story. It involves the stock market. Be warned: it's a little frightening. Предупреждаю: это немного пугает.

VISHNU AND PIPER: Ooh! All right!

JED: It's called “Aurelia and the Bear.” ДЖЕД: Он называется «Аурелия и Медведь».

(MUSIC BEGINS - LIGHTHEARTED)

PICKUP JED: Aurelia was a young woman who was always looking for clever ways to invest.

Aurelia: I've gotta be smart

JED: One day, Aurelia was researching some companies whose stock she was thinking of buying. That's when her big gigantic brain noticed something.

AURELIA: Wait a minute! There's a pattern here. Здесь есть закономерность. Let me check the records… (SFX BOOKS THUMPING AND PAGES TURNING)

JED: Lots of people who invest in the stock market try to make money by buying shares when prices are low and then selling them when prices go higher. Like if you bought a share for 1 dollar and then it went up to 2 dollars -- and you sold it. You just doubled your money! However, it's really hard to predict what prices are going to do.

AURELIA: Aha!

PICKUP JED: But Aurelia, she saw a pattern in the way stock prices went up and down. It was a pattern no one else saw. And she could use that to buy and sell stocks and make a whole lot of money.

AURELIA: I mean, if I'm right, I'm going to make bank!

JED: So Aurelia started buying shares. And just like she predicted using her method, the prices of the shares she bought soon went up.

AURELIA: I'm a genius! I'm gonna buy a lot more shares. It is looking like a bull market!

VISHNU: A bull? What does that mean?

JED: Well, in the animal kingdom, a bull is a male cow. (SFX BULL BELLOW) But when you're talking about the stock market, a bull market is the nickname stock traders use when more people are buying stocks, and that pushes prices up overall. (SFX BULL BELLOW) Но когда вы говорите о фондовом рынке, бычий рынок — это прозвище, которое биржевые трейдеры используют, когда все больше людей покупают акции, и это в целом подталкивает цены вверх. (SFX DING DING DING) Aurelia put more and more of her money into her favorite stocks because she thought the stock prices would keep going up and up.

AURELIA: Flying cars, sure, I'm bullish on that. Electric sandwiches? Pass. Ooh, but flying electric cars delivering sandwiches? О, а летающие электромобили доставляют бутерброды? Major super bullish! Главный супер бычий!

JED: Aurelia was making money fast, and she was convinced she'd figured this whole stock thing out. But that was her mistake... the stock market is big and complex with lots of moving parts. She had focused on a few companies' stocks and jumped to a conclusion -- and while she __did__ see a pattern -- it was only __part__ of the bigger picture. It's like she saw thick black hair, two white horns -- and thought, “It's a bull!”

AURELIA: Buy! Buy! Buy!

JED: But you know those illusions where you're looking at something really close, and it looks like one thing, but then when you step back it's something entirely different? ДЖЕД: Но вы знаете эти иллюзии, когда вы смотрите на что-то очень близкое, и это выглядит как одно, но когда вы отступаете, это что-то совершенно другое? If she'd been able to step back and see the bigger picture, she would've realized that the black hair and white horns weren't on a bull. Если бы она могла сделать шаг назад и увидеть картину в целом, она бы поняла, что черные волосы и белые рога были не у быка. She was, in fact, looking at the fur and teeth of a massive bear. На самом деле она смотрела на мех и зубы массивного медведя.

(SFX BEAR ROAR)

JED: In the stock market, a bear market is the opposite of a bull market. In a bear market - traders think prices are going down and are going to stay down. На медвежьем рынке трейдеры думают, что цены идут вниз и останутся на этом уровне. So lots of people try to sell and sell, and prices overall drop. Так что многие люди пытаются продавать и продавать, и цены в целом падают. And markets can turn from bulls to bears pretty quickly - meaning people can lose lots of money real quick.

AURELIA: Wait, what's going on? Why are my stock prices falling? My money!

JED: And this was no baby bear market. Not even a cranky mama bear protecting her cub. No, this was a porridge-too-hot, bed-too-hard, angry Papa Bear-market. And it was bent on ripping into her stocks like they were a picnic basket full of cake. И он был готов врезаться в ее чулки, словно они были корзиной для пикника, полной пирогов.

(SFX BEAR ROARING AND DESTROYING CARS AND WINDOWS)

JED: Prices of stocks everywhere went down -- including Aurelia's, and in the aftermath, Aurelia realized she'd lost everything.

PIPER: What happened to her?

PICKUP JED: She had to start over. ПИКАП ДЖЕД: Ей пришлось начать все сначала. And the next time she invested her money, she would do it a little more wisely and a lot more carefully. The end.

(SFX CRACKLING FIRE FOR A SECOND OR TWO)

VISHNU: Why did they choose “bull” and “bear” to represent the stock market?

JED: I don't know. Maybe they just liked animals that start with the letter “B”.

PIPER: They should've picked “barracuda.” That's cooler.

VISHNU: Or “Blue Whale.”

JED: Heh, yeah… What other “B” animals are there?

BRIDGET: Badger.

JED: Badger?!! Where?! Auuugghhh!!! Run for your lives! It's a badger! Это барсук! (SFX - RUNNING AWAY THROUGH THE WOODS)

BRIDGET: Well, he's sleeping in a tree tonight.

**---KIDS HAVE A SAY HERE---**

BRIDGET: Before we pack up this campsite, here are some final thoughts about what we learned today. Sure, the stock market can SEEM confusing...and sometimes, it is. There are lots of words that are difficult to understand, or jargon. It's not always clear why the stock market acts the way it does.

PICKUP JED: And actually, only about half of Americans even own shares. But it's worth understanding how and why the stock market works. It's a way that some people can grow their money, but you can also lose money - so it's not without risk. So keep on asking those questions about the stock market or anything else. We'll be waiting for them.

**---CLOSE---**

BRIDGET: Thanks for listening to Million Bazillion -- where we help dollars make more sense. We'll be back next week with an all new episode. If you have an idea for an episode or a question you want answered, email us at Marketplace dot org slash million.

JED: And if you want new episodes of Million Bazillion sent to your email inbox each week...along with bonus content like a tip sheet, a quiz, and cool comics. Sign up Marketplace dot org slash BONUS.

BRIDGET: Special thanks to professor Ashleigh Eldemire Poindexter at the University of Tennessee Knoxville for helping us understand the answer to this question...to our colleagues at Marketplace who offered ideas and insights along the way. And thanks to Kimberly Adams, Marissa Cabrera, Marque Green, Meghan McCarty Carino, Daisy Palacios, Jeff Peters, Lianna Squillace, Vishnu, and Piper,...for lending us their voices for this episode.

JED: Million Bazillion is brought to you by Marketplace in collaboration with Brains On! And American Public Media.

I'm your host, Jed Kim…

The senior producer is my co-host, Bridget Bodnar

Marissa Cabrera is our producer.

Sanden Totten is our editor.

BRIDGET: Chris Julin is our sound designer.

Our theme music was created by Wonderly.

This episode was mixed by Bekah Wineman.

Our digital team includes Erica Phillips and Tony Wagner.

Sitara Nieves is the Executive Director of On Demand at Marketplace.

JED: And special thanks to the people who provided the startup funding for Million Bazillion, and who continue to help keep us going: The Ranzetta Family Charitable Fund and Next Gen Personal Finance, supporting Marketplace's work to make younger audiences smarter about the economy.

BRIDGET: To all the grown-ups listening right now – we hope that you and the kids in your life are having some good conversations about money thanks to Million Bazillion. We created this podcast to help kids get an early start on learning about the economy – and to keep it going, we're counting on your support. Donate today at marketplace-dot-org-slash-givemillion, and thanks for chipping in to make our work possible. Сделайте пожертвование сегодня на marketplace-dot-org-slash-givemillion, и спасибо за участие, чтобы сделать нашу работу возможной.