Welcome to Stock Market ERA
The thread all about publicly traded video game developers, publishers and everyone else involved in this industry!
Big, small, American, European, Japanese, you name it, we talk about it.
RISKS
This thread is meant for discussion about stock trading and the general business of publicly traded companies. Discussing buying/selling options is allowed.
However, please note that your actions on the stock market based on information obtained in this thread are your own responsibility. You cannot blame someone else for giving wrong advice on this forum. We are not finanical specialists; you do not pay us for services; any profit or loss obtained from your actions after reading this thread is your personal gain or loss!!
Disclaimer by KennyL:
How does the stock market work?
Public companies allow virtually anyone to buy shares in their company. By buying such a share, you become a shareholder (and thus an owner of a small part) of the company. People can buy and sell shares on a stock exchange. Each country usually has multiple stock exchanges, with different kinds of companies listed on each exchange; this can be based on industry, like the Nasdaq and the Dow Jones in the United States, or on size, like in a lot of other countries.
Each company listed on a stock exchange has a share price: the current price of a single share. Based on supply ("late") and demand ("bid"), the price of the shares go up and down. The share price is influenced by general market sentiment, such as macro-economical news or the political climate, and on announcements by the company, such as earnings releases, product reveals/news drops, and news around the company.
How can I buy shares?
To buy shares in whatever company, you have to register yourself at a broker. This is a company that manages your portfolio of shares. You pay your broker a small monthly or quarterly fee for their service and a small fee for each transaction they execute. Your bank can be a broker, but there are also specialised brokers. Brokers have access to wide variety of stock exchanges and will help you get your hands on the shares you want to invest in. Brokers allow you to trade yourself, but a lot of brokers also facilitate options to let specialists at their company trade for you or to help you with trading.
A big European broking company with a fairly cheap do-it-yourself option is DEGIRO (click).
There are also all kinds of stock trading apps that also allow you to tip your fingers in the pool of investing. If you're new to investing, these may be worth to check out as they're usually fairly cheap. However, they also offer less service. Here are a couple of articles with overview lists: click and click
Terminology
Price: the price of a single share.
Market cap: the value of a company, based on the share price times the amount of shares available.
Order book: a list of available orders. There is a buy section with bids from interested investors and a sell section with the orders from shareholders who want to get rid of (a portion of) their current shares.
Bid: the current highest bid on a share in the buy section of the order book (people who want to buy).
Late: the current lowest offer on a share in the sell section of the order book (people who want to sell).
Open: the opening price of the trading day.
Close: the closing price of the trading day.
EBIT: Earnings Before Interest and Taxes; also known as operating income.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization.
Extraordinary income: non-recurring income; income that was generated from a one-time opportunity.
Gross income / Gross profit: sales revenue minus production costs.
Operating income / Operating margin / Operating profit: Income resulting from a firm's primary business operations (excluding extraordinary income).
Net earnings / Net income / Net profit: the total revenue minus all expenses in a certain period.
QoQ / Quarter-over-Quarter: the difference in results over two adjacent quarters (for example Q2 2018 versus Q1 2018).
Sales revenue: the income realised from selling goods and/or services in the normal operations of a company.
Total revenue: all income in a certain period.
YoY / Year-over-Year: the difference in results over the same period in two adjacent years (for example Q1 2018 versus Q1 2017 or full year 2017 versus full year 2018).
You can look up more terminology at BusinessDictionary.com.
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