Why are IPO shares worth a shit? Ok, you got awarded an i.o.u. It has no connection to profit making since the market is irrational. It is not connected to pro

Why are IPO shares worth a shit? Ok, you got awarded an i.o.u. It has no connection to profit making since the market is irrational. It is not connected to profit making at all. People who buy IPO shares believe that the company's stock price will go up and they'll be able to sell the shares for more in the future. That's all. It doesn't matter if the company makes a profit, makes a loss, grows, shrinks, or anything. The only reason to buy shares is because you believe the share price will move upwards. Company share prices go up even when the company makes a giant loss. It's all about predicting future performance, not current performance. The primary reason why the shares would increase in value is because the company makes a profit and shares it through dividends (eventually), but there are plenty of others. People also buy shares because it enables them to vote on what the company does, but I imagine that's a relatively minor factor in the stock market.