You may not pay the company when you buy shares from another trader, but you buying the shares drives the price of the shares and with that it makes the company more valuable.
You may not pay the company when you buy shares from another trader, but you buying the shares drives the price of the shares and with that it makes the company more valuable.
lurch@sh.itjust.works 6 days ago
no, the share price doesn’t reflect the worth of a company, but the worth of the shares. if all shares just suddenly vanished, the company would still be there and still be worth the same. the share price may just increase the money they can make by emitting more shares.
Quacksalber@sh.itjust.works 6 days ago
The share price does reflect the worth of the company in that a low share price will prevent companies from taking on loans to expand or keep operating. That was the whole idea behind the GameStop shorting saga. Also, the share price also benefits those that hold a majority of the shares. Musk is the richest man on earth because he holds the most Tesla shares. He can use the fact he owns these shares in order to take out loans with great conditions and to buy influence.