Although some stocks have pyramidal like behaviors, these are generally considered fraudulent and collapse in the long run. Legitimate stocks are expected to b

Although some stocks have pyramidal like behaviors, these are generally considered fraudulent and collapse in the long run. Legitimate stocks are expected to be backed by the efficient creation of valuable products or services the company can sell at a profit. These profits are distributed to stock holders as dividends or reinvested in growing the profit potential. The value of a stock crucially stems from the rights to the future profits they give their holders. Legitimate stocks are not just about giving the money of late buyers of stocks to early buyers of stock.