How does the stock market work? Oliver Elfenbaum | TED-Ed

In the 1600s, the Dutch East India Company employed hundreds of ships to trade goods around the globe. In order to fund their voyages, the company turned to private citizens to invest money to support trips in exchange for a share of the profits. In doing so, they unknowingly invented the world's first stock market.

So how do companies and investors use the market today? 

Oliver Elfenbaum explains. [Directed by Tom Gran & Madeleine Grossi, narrated by Addison Anderson, music by Euan James-Richards].