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
Stock Prices are loosely coupled to a company’s profits, so spending money at a company does help the stock price a little.
The primary driver in the modern stock market is not the company, it’s how much today’s buyer thinks he’ll be able to sell the stock for down the road. That’s largely based on how people feel about the company. Reality has an effect on that, but it’s mostly vibes.
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