3 ms·
One big reason shares have value because with enough shares you own a company.
by swagasaurus-rex 4y ago
One big reason shares have value because with enough shares you own a company.
- gruez 4y agoThis comment is bad regardless of what "you own a company" means. If "own" means "control of a company", this is trivially proven false by comparing the price GOOG (without voting power) vs GOOGL (with voting power). The one with voting power actually trades lower than the one without voting power (probably due to better liquidity), which is not what we'd expect if control was "One big reason shares have value". If "own" means "claim on future profits of the company", then it's also wrong because you don't need "enough" shares to have a claim on future profits. More is certainly better, but there isn't some arbitrary amount you have to reach to have "enough".