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?
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what is the simplest way to explain how stock prices increase then?
In: Economics
No. Stock is a security that is valued based on a number of factors, and revenue is one, but only noticeable shifts in revenue will change the calculus. No one is making any different assessments about a stick because of individual sales. Ultimately the value of a stock isn’t tightly tied to any particular number, it’s valued based on whether people think it’s going to go up or down.
The best thing you can do to help a stock is talk about the future of the company in a positive, fact-based way publicly, like on Twitter. This isn’t exactly ethical if you hold stock in the company and don’t disclose that, but you can say “here’s why I own this stock,” and cover that base too.
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