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No. The share price is the latest price someone purchased that share for. It's just a metric. Someone did literally spend $700 and gave it to someone else in ex
by casus 11y ago
No. The share price is the latest price someone purchased that share for. It's just a metric. Someone did literally spend $700 and gave it to someone else in exchange for one "share". Now, you may call a "share" just a piece of air--but it is something that has value. The money for it, however, comes out of my pocket and is definitely not thin air.
- stefantalpalaru 11y agoWhat if you skip selling the shares for money and you use them directly to buy something? I'm pretty sure you can buy other companies with a partial payment in shares and you can hire people doing the same, so the share acts like currency in some scenarios.