I think it’s the part of the companies owned by public, right?
So if a company which worths a value of P and sells a percentage Q for money X to the general public. What impact from day to day transactions of these stocks have on the company?
The company now has the money, and whatever profit it generates from the the part it sold to the public. If the stock price raises or lowers, how does it affect the company? I believe most of the stock buyers don’t have any say what the company should or shouldn’t do? (Unless they own a very large percent of that stock)
In: Economics
Imagine you have a toy that lots of kids want to play with. You decide to let them borrow it for a little bit, but they have to give you something in return, like a cookie. Now, imagine that toy is a small piece of a big company, and when people borrow it (buy stocks), they give the company money. If the company does well and gets more popular (makes more cookies), the toy (stock) you have might become more valuable, so you can trade it for more cookies later. But if the company doesn’t do well, the toy might not be worth as many cookies. So, buying stocks is like owning a piece of a company and hoping it does well so your piece becomes more valuable!
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