/biz/ - Business & Finance

>>20181784
Technically only supply and demand. Same as food. But there is more to food than its price obviously. Same here.

You get a Share of that company. You own a part of it.
You get voting rights, youre share is backed by 1/100000th of the company itself. When that companies value increases your value increases. You get to decide what course that company takes in the future.

And more importantly, other companies need to pay you money if they want to get involved in that company as well. Deutsche Bank wants to decide how AAPL works? They need to buy your share.
And this all mixed with the expectation of how it will be in the future.

This is very simplified, but its 3:40am here.
Read Graham or Buffett. Their explanations are quite good usually.

Oh. And dividends. Though many companies pay none or so little it hardly matters. Like BRK.
They also add value to a stock.

Someone saying that the value of a company is based on future dividends is retarded. Same as a person who says its all just "How much the company is worth"
Like someone argueing that the market is gambling.