I just don’t understand how it works…when I hold shares in a company and I spend money there, am I technically making a very very small amount of that money back?
ALSO:
what is the simplest way to explain how stock prices increase then?
In: Economics
The truth about stock prices is that it is decided by the investors. A share is worth what someone is willing to pay for it. If good news comes out about the company more people are going to want shares so the investors will offer a bit more than they would have yesterday. However if bad news comes out about the economy in general some people will pull all of their stocks no matter what they own and a good company’s price will drop without the value of the company changing at all.
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