Theoretically, being a shareholder exposes you to the risk of the company failing or the shares otherwise becoming worthless. The previous owner is selling thei

Theoretically, being a shareholder exposes you to the risk of the company failing or the shares otherwise becoming worthless. The previous owner is selling their investment to you, and it is now as if you are the original investor, for whatever price the shares were originally sold by the company. So there's a kernel of substance in there at least.