Does spending money at a company affect their stock price?

Question

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

Answer 1

Stock prices increase when there’s more demand for the stock.

For example, a business can be hugely successful and profitable, but if for some odd reason the stock is considered “bad” and it gets sold in large volumes and no one buys more, the stock price will go down.

Otherside of the coin, GameStop. Stock price booming due to ppl being excited about the stock, but not really related to business performance