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?
In: 76
It’s because you think it might pay dividends in the future, and/or you think its value will rise and you can sell it later for a gain.
And it’s more than just “owning a baseball card”. You get a vote in the company (usually). Of course in practice most people ignore that fact because their 1 vote or few votes doesn’t mean much compared to the larger shareholders, but it’s still a fact.
Whoever is downvoting correct answers needs to stop that.
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