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Author: NoFreeRide Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 266118  
Subject: Buying stocks in general Date: 1/24/2013 2:17 PM
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Why would a person want to invest in a company?

I can see buying a company that provides dividends, you get something back.

I can see buying a large share of a company (51%), you get some control.

But why buy .000001% of a company that gives nothing back in return? Granted stock prices go up and down but why should they? The price of a share of stock, more or less, has nothing to do with the value of a company. The value appears to be based on some other abstract value driven by the supply and demand of a certificate.

If I bought a share of Netflix yesterday it was around $100. This morning it had jumped to $143. How rational is that?

I have been investing for about 20 years but this is something that has always made me go "Huh?".
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