Ok, explain something else to me about stocks: the company issues stocks, usually an an IPO, sometimes other times, basically taking out a loan, yes? Why does it then matter to the company how much those shares are worth in the future? Why does it care what it's trading at?
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That's absolutely it. Amazon hardly pays any dividends, because they don't have that much profit. The value of Amazon stock is entirely virtual, caused by speculation. It's like antiques. It's not valuable for the material but for the increasing rarity vs demand.
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Which is kind of my point - Ellie is right that the whole speculative market in stocks feels like meaningless nonsense like the prices of rare baseball cards It isn't supposed to be - the price of a stock is supposed to be you betting on how much cash that stock will pay out
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