There are a number of reasons to have stock in a company, the dividend returns are often not a big factor, as the dividends are usually far less than the cost o

There are a number of reasons to have stock in a company, the dividend returns are often not a big factor, as the dividends are usually far less than the cost of purchasing the shares. Instead purchasing shares has other benefits, such as certain tax concessions (e.g. franking). To increases in the capital value of the shares purchased which can then be sold for a net profit. Additionally holding shares (especially large numbers) gives you certain voting rights to how a company is run. This is why certain wealthy individuals are known to purchase stock in public media companies. (There are examples were some media influencing has taken place.) You can also lease your shares/work with short sellers for gains. (which is trying to earn money via speculating the movement of the share price.) A bit more on short selling: (this is grossly simplified) Short selling is the idea of selling shares that have not been purchased beforehand. Let's say Person A sells person B 50 shares at $1 each, however after the deal is made the share price drops to 50c each. Person A is able to scoop up the 50 shares for half the price, even though person B is contracted to buy them for $1. In effect a decrease in the share price has given Person A a profit. My example sounds a bit fraudulent (selling something that you don't actually have.) In the real world it involves leasing shares and the idea that shares will be available to buy at a later date. Porsche famously bankrupted many short sellers /speculators by quitely buying up all the spare VW shares. (Something they deny publicly.)