This first video (2:57) from www.eFinanceDirectory.com provides a basic explanation of what a stock is, how a stock share is created and how an investor can buy and sell stocks. (Featuring: J. Bernard, LPL Wealth Management)

In the first few seconds of the video we learn that companies issue shares in order to raise money. Companies approach investment firms, called the primary market, in order to create an Initial Public Offering or IPO. At 0:45 we learn that the secondary markets (NASDAQ, NYSE) are where the IPO shares are sold to investors.

At the 1:06 mark we learn how to buy or sell a stock. There are different types of orders you can place with your broker or on-line, depending on the price you wish to set for your purchase or sale: (at the 1:15 mark) a market order, (at 1:25) a limit order and (at the 1:40 mark) a stop order.

At the 2:20 mark in the video our host asks, should you invest in stocks? He reminds us that stocks represent ownership in a corporation and that when you purchase a stock you become an actual stockholder. He recommends that if your investment outlook is long-term (12-18 months) then stocks could be a solid investment choice for you.

In summary, at 2:20, our host tells us that if you have a strong understanding of the companies and you understand how to place a trade then stock ownership is a good investment.

Click on link here to view this video:
http://efinancedirectory.com/multimedia/Buy,_Sell_and_Trade:_Investing_in_Stocks_Video.html

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In the second video, 4:15 minutes long, from www.informedtrades.com, our very helpful host David narrates through a series of informative slides describing the pre and post-internet trading process on the NYSE.

At the 0:33 mark we learn that the before the internet, for an investor to buy or sell a stock they would call to speak directly with a registered broker at what was (and still is) called a full service brokerage firm. The internet has dramatically changed this process with the emergence of electronic trading platforms and discount brokerages.

At the 1:40 mark our host describes, in detail, a NYSE pre-internet trade execution process (Broker – Order Dept – Firms Clerk on Stock Floor - Floor Broker – Specialist – Matches order with Trader looking to Sell). As David walks us through the sequence of events involved in executing one trade, we realize how many people were originally involved.

At the 2:52 mark we learn about how the trade transaction process works now that the internet ‘SuperDOT’ system is in place. With this electronic system, trades under 100,000 shares go directly to the specialist on floor. The system speeds up trade execution and lowers costs overall. At 3:47 our host describes that brokers now provide customized advice, order clerks and floor brokers execute larger trade orders.

In closing, our host introduces the next video in the series, the NASDAQ.

Video link:
http://www.youtube.com/watch?v=VpCuDb1H-nc&feature=channel
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In the third video, which is 2:23 minutes long, Warren Buffett tells us about his thoughts about the benefits of Wall Street. In fact he's telling us about how to avoid any environment that promotes 'activity' in order to ensure profitability in the long term.

At the 0:07 mark he tells us a little about how he worked on Wall St. once and how he has friends on each coast, but that if he truly wants to make a decision (0:21) he goes into a room on his own and just thinks. He cautions that if you are in a place where you are overstimulated you will feel that you have to 'do something' everyday (0:33 mark) and by this he means that you may feel pressured to buy and sell your stocks. At the 0:53 mark his advice is to find one good idea each year and take it to it’s fullest.

Later at the 1:08 mark he again describes Wall Street as "activity". He states, at 1:25, "Your inactivity will make you money". (1:35) He again reiterates and further describes that a broker makes money by encouraging activity - to buy and sell. Brokers' activity makes them money. At 2:06 Mr. Buffett cautions us to stay away from environments that stimulate activity, as only the intermediary will earn the money, we will end up being broke.

In closing he describes how he benefits from going to Wall Street to 'get informed' (at the 2:21 mark) but then goes home to ponder on his own.

Video link:
http://www.5min.com/Video/Warren-Buffett---the-benefits-of-Wall-Street-11335
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