Not 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 accordin

Not 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.