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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Well, often the consumer’s purpose of investing in a company is that the value of your shares could increase beyond what you paid for it, so you could increase the value of your investment that way. If you buy 10,000 shares of something that trades at $1 on monday, and it goes up 10 cents on tuesday, then on tuesday you made a capital gain of $1000.
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