How market news moves share prices with Jason Kotchoff from Stocklight

**Jason Kotchoff** (0:03)
I am selling the building.

**Owen Raszkiewicz** (0:06)
The final season of FX is the Bear.

**Jason Kotchoff** (0:16)
Or not.

**Owen Raszkiewicz** (0:18)
We are outgunned and we are outmanned, but we have each other.

**Jason Kotchoff** (0:24)
FX is the Bear, the final season. All episodes now streaming on Disney Plus. The tooling has never been better for an investor. These announcements that we're looking at, in Stocklight's case, for example, you could see how they impact your holdings. If you had 100 shares held in Megaport, this stock price movement of 6% would impact you this dollar figure. Being able to stay on top of your portfolio with tooling that's AI-backed, clearly, it gives you a capability that you may never have had before.

**Owen Raszkiewicz** (0:57)
Hey there, here's a quick note. This podcast contains general financial advice only. That means it's not specific to you, your needs, goals or objectives. So don't act on the information until you've spoken with your financial advisor. You'll find our full disclosure, disclaimer and link to our financial services guide in the show notes.
Welcome to this episode of the podcast where we're going to be talking about how news flows through the stock market and actually affects companies. We're going to talk about companies like DroneShield, Megaport, NextDC, some Australian examples, but we're also going to talk about US examples. And we're going to try and pull together not just how it all works, but why the stock market reacts the way that it does. If you've ever thought to yourself, I thought that was a good company announcement. Why did the stock price go down? We'll probably talk a bit about that today. We'll talk through some tools and some great things. And I'm joined by Jason from Stocklight, one of Australia's biggest investment apps that helps you track all this stuff in near real time. So if you're looking for a source that you can kind of get immediate insights from, this episode is for you and Stocklight is the place to go. All that and more in this episode of the podcast.
Jason, how are you doing man?

**Jason Kotchoff** (2:07)
Yeah, good. Thanks for the intro, Owen.

**Owen Raszkiewicz** (2:09)
Yeah, it's great to sit down. We've done this once before many moons ago in a different location, same city, different location. Today, we're going to be talking about news and information.
I remember when I was learning about investing in the stock market, people would always tell me that there's only three investment edges. There's your behavior being like better with money, not reacting in fear or panic or with greed and ultra optimism. The second one was to be a better analyst, like to analyze the facts better, which is debatable whether you can do that better than a computer these days. Then the third one was information. So, getting access to good information. We're going to talk about that third one today.
You've built some really cool tools that we're going to share on the screen for people. If you're watching, keep watching the screen. If you're driving though, maybe just pop it down and you can come back to it later. If you're listening, we'll walk you through it and explain the steps as we go.
Maybe we want to start with this whole idea of the stock market being a public stock market. As in, companies being public is a really important first step for people to understand. Because effectively, when a company is on the stock exchange, everyone is a shareholder that owns that company, needs to know what's happening with it. But obviously, they don't know everything. We don't know what is happening in the Telstra headquarters today, even if we own shares. But there is a point where that information must be known by the stock market and must be known by shareholders. So let's just use that as a starting point. Can you talk us through the information flow? What happens in the stock market? And I'll follow up with some more questions, I'm sure.

**Jason Kotchoff** (3:56)
Sure, absolutely. So I think the best place to start would be to ask ourselves why are companies publicly listed? And typically, companies start their journey small, hopefully get bigger.
What tends to happen is the founders of companies, employees of companies, early stage investors in companies want to return on their investment, their time, their money that they put into this thing. And so in order to get that return, they have to sell some of their ownership, some of their equity in the business to somebody else. Now, that can occur pre-public. So if you've got a private business, you might be able to sell some shares to another professional investor. In Australia, in order to invest in a company that's not public, you need to be accredited with a certain threshold of authority. You need to have a certain portfolio size under yourself and enough assets to be classified as...