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A stock represents ownership in a company that makes things. The value of the stock is relative to the performance of the company, not the amount of fools avai

• throwaway6977 5y ago
  "The value of the stock is relative to the performance of the company" This is one of the big lies.
  • fivea 5y ago
    > "The value of the stock is relative to the performance of the company" That's true if companies are evaluated on their fundamentals. If you start to deal with stocks as if they were meme coins, with no concern of cash flows or business models or profitability, and you add a decade of quantitative easing, then you get stocks like Tesla, and a stock market that's driven by the need to park free cash no matter how risky and absurd the investment is.
• laserlight 5y ago
  > The value of the stock is relative to the performance of the company, not the amount of fools available to sell to. A company might be destined to make twice their profits, yet if nobody believes they could, nobody will buy their stocks, leaving stock price the same. One might think, the stock price would certainly increase when the company realizes the profits, but it’s not the case either. The market could think that it was a one off event and the company wouldn’t continue growing. Therefore, nobody buys the stock.
• legutierr 5y ago
  > Crypto represents nothing and is backed by nothing other than sunk-cost. Maybe sometimes. However, if a token is used to pay for blockchain services (such as shared-compute and -data services), the value of the token is at least in part based on the value of those services.