Linked Questions

6 votes
5 answers
5k views

Why do stocks go up? Is it due to companies performing well, or what else? [duplicate]

I searched for this question but I didn't get any convincing answer. What everyone says is that if a company does well (I assume this means the company has good returns on its projects) then people ...
TheGeometer's user avatar
0 votes
3 answers
259 views

Why do stock prices change? [duplicate]

As I understand it, a company raises money by sharing parts of it ("ownership") to people who buy stocks from it. I get that some stocks pay dividends, and that as these change the price of the stock ...
Ken - Enough about Monica's user avatar
0 votes
1 answer
220 views

Why the stock price is rising when company is growing well [duplicate]

I mean, you have a company with shares of 20 dollars and they have 10 million of it (market cap 0.2 B), not paying dividends. What makes other people buy their stocks, when they see that they were ...
Dereexk's user avatar
  • 11
-2 votes
1 answer
120 views

If stocks are all supply/demand, what figures are reliable for profit predictions? [duplicate]

I've been told that stock/share value is 100% controller by supply/demand -- nothing more/less. Financial history of the company is supposedly zilch -- so is any profitability/etc. Basically, ...
Charge of Coats's user avatar
-1 votes
1 answer
89 views

When a Company was expected and then made a profit of X $ then that X$ increased it's share price. or those the Sellers and Buyers [duplicate]

When a Company was expected and then made a profit of X $ then That X$ increased it's share price. or those the Sellers and Buyers? Is it because Company A did a profit of X amount, so X is now ...
commanche's user avatar
26 votes
10 answers
10k views

Why do investors pay trillions for minority stakes in companies, when their only potential payback is modest uncertain dividends? [duplicate]

I'm struggling to understand the core reason to invest in stocks as a minority shareholder. Majority shareholding makes more sense as you effectively control the company, so you can pay yourself ...
Jin Long's user avatar
  • 464
16 votes
11 answers
12k views

Does the stock market create any sort of value?

Sorry if the below seems like a conspiracy theory. It probably is, but I probably don't understand something. (This has bugged me to no end as long as I can remember.) Okay, so here is what I ...
Christopher King's user avatar
12 votes
9 answers
8k views

What gives non-dividend stocks value to purchasers? [duplicate]

This is a question that has bothered me for awhile about the fundmental nature of the stock market as a whole, and no one has given a satisfying explanation. What is root cause of a stock having ...
dsollen's user avatar
  • 1,196
10 votes
4 answers
3k views

Why is the price of Berkshire Hathaway B class shares proportional to the face value and not the voting rights?

So there are BRK.A and BRK.B. The face value of BRK.A is 1,500 times of that of BRK.B, and BRK.A has 10,000 times the voting rights of BRK.B. BRK.A is normally traded at about 1,500 times the price of ...
Jaeseop Ahn's user avatar
0 votes
2 answers
268 views

Are stocks profitable for companies even in the long run

I'm trying to understand stocks. My current view is the following. Assume I have a company and I need money to expand my business. Instead of taking a loan I give people the opportunity to buy a ...
ludz's user avatar
  • 135
1 vote
3 answers
523 views

What value do I add buying stocks in the secondary market?

I'm trying to understand some fundamentals of what it means to invest in the stock market. This question and the answers have been helpful to me: Why does demand for stock rise when a company appears ...
firebush's user avatar
  • 129
-1 votes
3 answers
221 views

Why does stock go up or down with company earning? [duplicate]

I want to invest in the stock market, but can't get one thing clear. It is seen that as a company's earnings increase, its stock value also increases. Why? The company is earning more money, not the ...
SuperAadi's user avatar
  • 101
5 votes
1 answer
367 views

Are dividends the only thing linking stocks to corporate performance?

People generally buy stock because they expect the price of the stock to rise. The main force that determines stock price is, as far as I can tell, the force of the market, i.e. supply and demand for ...
shadowtalker's user avatar
1 vote
1 answer
368 views

Why is it in a company’s interest to have high stock prices? [duplicate]

I understand that it is in the interest of a company to sell shares initially: It is a good way to get money to invest and grow. But once the shares are “out there”, why should the company care about ...
Joachim Breitner's user avatar