How Do Stockbrokers Use Math?

Video Transcript

"So, how to stockbrokers use math? Hi, I'm Jimmy chang and I've been teaching college math for nearly a decade. And, when you think about it stockbrokers use math all the time because they work with a lot of numbers. So, we're here to talk about how stockbrokers use mathematics. Now, if you've seen a business report or if you take a peek at what the stock market is like, you'll see a lot of whole numbers, fractions, decimals, what have you. And, that's exactly what stockbrokers do, they work a lot with numbers, they are in charge of your money, and so, they do a lot of selling and buying, so there's a lot of basic math there. But, they also take into account, the probability, how risky a stock or mutual fund happens to be and throughout each day, they either gain money for you, or they lose money for you. So, they deal with a lot of gains and losses, a lot of positives and negatives when it comes to their stocks, and portfolios. Now, when it comes to the end of a month, the end of a quarter, they work a lot of statistics and so they, what they do is at the end of a certain period, they work with a lot of number crunching, they figure out how each stock, or each mutual fund has done and then at the end of the quarter, or the year, they'll send you a report as to how well your portfolio or the stocks have done. So, that gives you a little glimpse of as to how stockbrokers use mathematics. I'm Jimmy Chang, and math is power."