Biz Kid$ Season 1 Episode 21 Bulls, Bears, and Financial Markets

In Biz Kid$ season 1, episode 21, titled "Bulls, Bears, and Financial Markets," the young entrepreneurs explore the world of investing in financial markets. The episode introduces the concept of stocks, highlighting how they're a piece of ownership in a company. The episode also underscores that businesses can be privately held or publicly traded on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ.

The episode delves into the stock market's fluctuating nature. A 'bull market' is when stock prices rise over an extended period, whereas a 'bear market' is when stock prices decline over time. The hosts explain that the stock market's behavior is based on several factors, both domestic and international. The young entrepreneurs showcase the importance of understanding these factors and how they impact investment choices.

Moreover, the episode emphasizes the role of financial analysts in understanding the financial markets. Financial analysts use various financial metrics to determine how a company is doing and whether their stock prices are a good buy or not. These metrics include the price-to-earnings ratio (P/E), earnings per share (EPS), dividend yield, and more. The episode highlights how choosing the right stocks is vital to one's portfolio's health and well-being in the long run.

The hosts discuss the importance of diversification in a portfolio to spread risk and generate more significant returns over time. The episode elaborates on diversification with 'mutual funds.' A mutual fund is a type of investment that pools money from multiple investors. An investment professional then uses the collected funds to buy a portfolio of stocks and bonds. This way, every investor owns a small part of the companies and bonds included in the mutual fund, spreading the investment risk.

Biz Kid$ season 1, episode 21 further emphasizes the significance of patience in investing. The episode highlights the 'buy and hold' strategy, which involves purchasing a stock and holding onto it for many years if a company's future looks bright. This approach contrasts with 'day trading,' which is a strategy that involves buying and selling shares of stock multiple times in a single day.

The hosts also explain common investment mistakes that young investors make. One common mistake is following the crowd and investing in whatever stock is hot at that moment. The episode highlights how important it is to do research, evaluate metrics, and make informed decisions before investing in a company.

Overall, Biz Kid$ season 1, episode 21, is an essential resource for young people looking to learn more about investors and investing in the stock market and the importance of diversification, patience, and making informed investment decisions.