Sorry if the title is a little vague, let me be more precise.
This post says that the value in shares comes from:
- The dividend payout
- Voting rights
- Owning part of a company, therefore receiving money in case the company becomes liquidated
Furthermore this post says that shares showcase the "health of a company".
But I have a few (naive) problems with this.
Firstly, some companies do not provide dividends, so while I can understand it as adding to a shares value this cannot be the underlying reason for shares having value.
Secondly, most people do not end up owning enough shares to have voting rights in a company. Are these people then holding onto shares in the expectation that if some big bucks fella comes along willing to buy these shares so that they can engage in voting rights that they'll be able to make money this way by selling to him? Furthermore, are voting rights really a motivating factor when people engage in the stock market?
Thirdly, I would imagine a company would only liquidate itself if it is not doing terrible well... at this point the share price would have dropped sufficiently to make the idea of recouping money through liquidation silly.. unless I am missing something?
My question would be what provides shares with value if not for the above three points, or have I confused myself?