Can someone explain to me what a share is? Why does the company benefit from the share going up or down?

Can someone explain to me what a share is? Why does the company benefit from the share going up or down?

Attached: 1590072492527.png (579x668, 66.59K)

The people who run the company own shares too so it effects them?

>Can someone explain me how to post an answer?
a share is just a part of a society, you're literally buying it

companies run on money. they get money from investors in exchange for a % of their company.

Why would you want to own a % of their company? Because you think it will do well and the earnings will be good. If the earnings are good, therefore company makes more money for the owners.

you buy share
it go up
you money
#buythedip
#swag
#futurewallofwallstreet

when stocks go up you can sell your company for more

>99% of the stupid jogs on this board have no idea how to answer a simple question
>2 related answers:
1. every so often a company issues more shares and sells directly on the market, therefore obviously the share price determines how much they raise for no dilution
2. 99% of daily volume isn't related to #1. this is just P2P trades. however the share price will impact their finances in other ways: ability to borrow, their employee pensions, etc.

Shareholders own company. Shareholders want price to go up. If it doesn’t they could make changes to company. That’s if they are coordinated.

>Why does the company benefit from the share going up or down?
Pure delusion.

A share is a portion of a company. You own some of the company if you own a share. The price goes up when people think the company will be more successful because people want to buy shares and it goes down when they think it will be less successful because they want to sell their shares.

If you have a lemonade stand business you have assets, clients and cash flow that all make your business worth some amount of money. If your business is valued at $100 and there are 100 shares then each share is $1. If you have good marketing, technology advances, or some other advantage that you discover, your company may be worth more and then you are undervalued. If someone buys in at $1 and the company grows to a $200 valuation you have doubled the value of your initial 1 share investment.

Buying makes the price go up
selling makes price go down

if it turns out that your lemonade contains poison, your projected valuation will drop and everyone will sell as fast as possible.

So, a share is a portion of a business. The company benefits because a higher share price means the company is growing. Lower share price means the company is shrinking.

Can someone explain to me why we dont get a share of the profits when we own shares? Dividends are not the same thing so dont even bring that up

But they are

Oh I see, ok, explain companies that dont give out dividends despite being profitable. Go on ill wait

Jews

And more so to a real point -- if they aren't paying dividedends, then the company believes that it can grow more value by investing their profits elsewhere. Generally, paying dividends should be the end goal of any company.

Some companies don't pay dividends because they want "intelligent" investors to own their stock.

Companies can sell shares when they get too expensive to finance their business operations and grow. It's basically dumping it on the public.

Don't they get the money in the IPO? The price later doesn't really directly mean money to the company. Just sayin you didn't answer OP.

It's actually a good question that I don't think a lot of people think about. I haven't gotten many good answers to this question: what's the intrinsic value of a stock/share that *doesn't* give dividends? Are you just hoping someone eventually buys it from you for a higher price? That's literally a ponzi scheme.

When stocks were first issued they were all dividend-yielding, now they literally seem like ponzi schemes ...

Attached: images.jpg (225x225, 5.59K)

maybe buybacks or maybe % of assets in liquidation event or maybe future dividends at higher value once cash is reinvested
just LARP like you have a company and think about it a little bit

>buy a share @ $100
>sell share later @ $150
>make $50
>but can't own a share in the company unless you spend $150
Is all share buying basically taking profit and leaving behind a company?

>maybe % of assets in liquidation event or maybe future dividends at higher value once cash is reinvested
true. but these just seems like talking points -- how often do these events actually happen?

A share is owning part of a company simply. And a company's share/stock price is determined by how valuable that company is. If a company's net worth goes down, the entire company as well as stocks and shares suffer to. Stocks and shares are just a way of evaulating the net worth of a company.

ok real question: How do I become a stock value analyst for the NYSE or NASDAQ?

not really because then there are speculative market trading instruments that do things to magnify your profit or mitigate loss.
plus you don't make $50. You make life $38 a share after taxes and fees.

so it is similar to governance tokens?

Lol I love posts like these.
>I'll wait
Always a hopeless dumbass that types like this

What I mean is once you take money out of your investment you can't make any more money in it unless it dips, because to buy back in you need to pay what you took out (or slightly more after taxes like you say). Is that right?

I mean yes sort of.
If you leave one company for a stronger competitor that's poised to take a greater market share then you may be growing alongside it. You can track the performance of your stock against other economic indicators to ensure you're actually making a profit in the long term.
There's also no guarantee that you'll be making a profit in the future. Technically the lifetime likelihood that a stock would make a profit is always closer to 0% than 100%. Just look at WeWork. You'd have thought you were sitting on a goldmine and now I don't see them recovering whatsoever. Someone developing biotech and ai could run a better office leasing type app with the help of a large property management company like airbnb if they're still around.
You want to be safe? Find a good portfolio management company and give them your contributions so that a low level financial analyst can live and breathe stonks for you. If you really want to day-trade then put aside like 2% of your paycheck into a brokerage account and mess around. That way if you make a gain you can buy some ice cream and if you lose it all you can cry over spilt milk.

After the IPO, the company does not make money from the price of its shares going up. But if the price does go up, the company can issue more shares later on and raise money that way.

Don't hurt your brain. The stock market is literally a Jewish scheme to create profit out of nothing, Jews are masters at this.
The socially acceptable answer is that shares are a good way to raise capital for a company to grow, and the investor can potentially make a profit.

But yeah, the whole thing is Jewish as fuck.