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
As others have already mentioned, spending money at the company results in:
* A tiny (yet real) increase in revenue
* Which may translate to a tiny increase in profit
* Which may have a tiny impact on the psychology of traders
* Thus resulting in a tiny increase in stock price
This is all so negligible that its basically invisible to you.
There is however, one counter point to consider:
In some rare instances, companies will deliberately offer a good/service *at a loss* (in an attempt to provoke customers to make other, higher margin purchases).
So some purchases may technically drive the stock price in the wrong direction (an infinitesimal amount).
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