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[B] TED-Ed: How Does the Stock Market Work?

LET'S UNLOCK WORDS AND PHRASES 🔐

incarnation

[ in-kahr-'ney-shuhn ]

noun

- a particular physical form or condition of something or someone that is changing or developing

The actor's portrayal of the superhero was considered the best incarnation of the character.

fluctuate

[ 'fluhk-choo-eyt ]

verb

- to change, especially continuously and between one level or thing and another

The temperature fluctuated between hot and cold throughout the day.

savvy

[ 'sav-ee ]

adjective

- having or showing practical knowledge and experience

She's quite savvy when it comes to social media marketing, always knowing the latest trends.

prospective

[ pruh-'spek-tiv ]

adjective

- possible

The company is considering various prospective candidates for the managerial position.

first crack

idiom

- to be the first person to try or attempt (to solve a problem)

He didn't succeed on his first crack at solving the puzzle, but he kept trying until he got it right.

LET'S TAKE A LOOK! [ FULL CLIP ]

What is the video all about? Choose two statements that refer to the main ideas of the video.


1. Everyday investors can only participate in the stock market if they have extensive knowledge and understanding of its complexities.

2. The Dutch East India Company funded its grand voyages by selling shares to private citizens, thus pioneering the world's first stock market.

3. Modern investors can only buy stocks through large investment firms and not directly through online platforms or brokerage accounts.

4. The stock market allows companies to raise funds for growth by selling stocks, making investors partial owners and increasing market value.

LET'S TRY IT! - FIRST CUT

A. Script Completion

Direction: Watch the first cut of the video and complete the following lines below with the missing words. Write or type down your answers while listening.

⏱ 00:06 - 01:09

  1. "In order to fund their , the company turned to private citizens- individuals who could invest money to support the trip in exchange for a share of the ship's profits."

  2. "This practice allowed the company to afford even grander voyages, increasing profits for both themselves and their ."

  3. "Selling these shares in coffee houses and shipping ports , the Dutch East India Company unknowingly invented the world's first stock market."

  4. "Since then, companies have been from willing investors to support all kinds of businesses. "

  5. "But the modern stock market is significantly more complicated than its ."

LET'S PRACTICE - SECOND CUT

A. Script Completion

Direction: Watch the second cut of the video and complete the following lines below with the missing phrases.

⏱ 01:40 - 03:23

Buying stocks makes those investors (1) in the business. Their investment helps the company to grow, and as it becomes more successful, more buyers may see potential and start buying stocks. As demand for these stocks increases, so does their price, increasing the cost for (2) , and raising the value of the company's stocks people already own. For the company, this increased interest helps fund (3) , and also boosts its overall market value by showing how many people are willing to invest in their idea. However, if for some reason a company starts to seem less profitable, the reverse also happen. If investors think their stock value is going to decline, they'll sell their stocks (4) before the company loses more value. As stocks are sold and demand for the stock goes down, the stock price falls, and with it, the company's (5) . This can leave investors with big losses- unless the company starts to look profitable again. This (6) is influenced by many factors. Companies are under unavoidable influence of market forces- such as the (7) of materials, changes in production technology, and the (8) . Investors may be worried about the about the changes in leadership, (9) and trade policies. And of course, plenty of investors are simply ready to sell (10) and pursue personal interests. All these variable cause day-to-day noise in the market, which can make companies more or less successful. And in the stock market, appearing to lose value often leads to losing investors, and in turn, losing (11) .

LET'S DO THE CHALLENGE - FULL CLIP

Direction: Answer the following questions by giving your opinion.


  1. What historical event inadvertently led to the creation of the world's first stock market?

  2. How does increased demand for a company's stocks affect its market value?

  3. How do market forces influence companies in the stock market?

  4. How does buying stocks benefits both investors and the company?

  5. Why do professionals emphasize the importance of long-term investing in the stock market?

LET'S RECAP!

Active-Listening Let-s-Recap-2

1. Which new words/phrases were easiest to remember? Give three.

どの語句/文が覚えやすかったですか?3つ挙げてください。


2. Which words/phrases were you having a hard time to speak/understand? Give three.

どの語句/文が話したり理解するのに難しかったですか?3つ挙げてください。

incarnation

[ in-kahr-'ney-shuhn ]

noun

- a particular physical form or condition of something or someone that is changing or developing

The actor's portrayal of the superhero was considered the best incarnation of the character.

fluctuate

[ 'fluhk-choo-eyt ]

verb

- to change, especially continuously and between one level or thing and another

The temperature fluctuated between hot and cold throughout the day.

savvy

[ 'sav-ee ]

adjective

- having or showing practical knowledge and experience

She's quite savvy when it comes to social media marketing, always knowing the latest trends.

prospective

[ pruh-'spek-tiv ]

adjective

- possible

The company is considering various prospective candidates for the managerial position.

first crack

idiom

- to be the first person to try or attempt (to solve a problem)

He didn't succeed on his first crack at solving the puzzle, but he kept trying until he got it right.