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The value of stock comes from a several things: - A voting share lets you participate in company decisions (not that anyone votes for much other than the board
by jtolmar 5y ago
The value of stock comes from a several things:
- A voting share lets you participate in company decisions (not that anyone votes for much other than the board recommendations / increasing profits)
- The company may pay dividends
- The company may participate in stock buybacks
- If the company is sold, the profits are distributed among shareholders
- The value of all of the above grows if a company grows, so stock in a growing company is worth more
- The same "get in early before other people get in and raise the price" mechanism as a pyramid scheme
And then all of those factors are awkwardly summed together into a single number.