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
for the most part, yes, but indirectly and it takes more than just you spending money. Stock prices have no connection to anything other than the stock market. Stock prices go up because of demand for the stock itself. Ie. people are buying the stock (investing in the company.)
When you spend money at a store, you are contributing to that company’s revenue. When revenue goes up, people tend to want to buy the stock more, which will cause the price to go up.
You could buy all the stuff you want from the store though, and the stock price could still go down anyway. Revenue is only one part of a company’s financials.
Even if every penny you spent contributed to the value of the stock, companies usually have millions of shares in the market. You’d have to spend 150 million at apple to move the stock price a penny.
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