Many decades ago it used to purely be that you'd invest in a company in exchange for an eventual share of their profits OR out of hope that one day said company would be successful enough to buyback your portion of control over the company (or be acquired by a larger company that'd need to buy this from you). Your share of the company in this sense is very much real.
However what if stock is for a company too large to be bought and that has no chance of ever offering dividends / buying back their stock? I don't understand what actual value there is to ownership of said stock other than selling it at a higher price to somebody who in turn thinks they can sell it at a higher price to somebody? Is there no actual value beyond letting you partake in a game of speculation? Like is it basically the equivilant of trading shit coins where there's clearly no hope of them becoming a real currency (unlike for example possibly BitCoin or Etherium) just hoping you get to be the scammer and not the scammed? Is there any tangible non-speculative value to owning a stock with no chance of dividends or buyback?
Leave a Reply