4 ms·
Forgive my ignorance of stock trading. For stocks that do not give dividends, then stock has no inherent value EXCEPT what a buyer thinks they can sell it for l
by hellbanner 11y ago
Forgive my ignorance of stock trading. For stocks that do not give dividends, then stock has no inherent value EXCEPT what a buyer thinks they can sell it for later (bigger fool theory)?
- tranquil 11y agoNot quite. The stock IS the company. If the company makes profit, or is perceived to have other value (assets, knowhow, etc.), then the stock is priced according to those parameters. Simple example; company issues 100 shares and makes $1000 profit per year. If you could buy those 100 shares for $1 each, you'd basically own 100% of a company that makes $1000 per year cash profits for $100. Good deal. Usually too good in fact, and that's why this stock would not be priced at $1 per share for long.
- hellbanner 11y agoOk, so stock ownership directly means ownership of company then? So if you had enough stock, you could become de-facto CEO?