I understand that a share of stock represents a share of ownership in a company. But if dividends are not paid, what is the actual value of that stock? Why does it have value? The company making more money does not flow to me because I own the stock. So is it basically just like owning a baseball card in that if the player (company) does well more people want to collect (own) their cards (stock) and this the price goes up?
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The simplest answer is it’s worth something because other people will purchase it from you.
It just feels so abstract because we’re used to getting something material when we make a purchase.
There’s lots of stuff about underlying value of the company etc etc, but on the simplest level it has value because someone else will pay for it.
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