>>34927Holy shit this post is comedy gold.
>the company doesn't matter and is irrelevant>nobody gives a shit about the underlying companyI see. So why does everyone at the stock market spend all their time analyzing the companies and their prospects? The value comes from the company behind that stock. Knowing what companies will do good and what won't however isn't easy. If it was everyone would be Warren Buffett.
>muh penny stocksThat's exactly what I said. No one wants to buy penny stocks because the company behind them isn't worth shit. Let's keep talking about real stocks here.
The idea behind stock exchange is to buy and sell shares of companies. The money is made by investing into companies that increase in value. The companies turn resources into something and then sell it at a higher price than the resources gaining profit. Profit on stock market isn't made out of others on the stock market.
The reason stocks like Apple and Google don't drop into pennies per share is because at that price someone could buy them, sell everything they have and keep the money making profit. Or if it didn't drop that drastically they could buy the entire company and keep running it making profit. The reason every stock is worth what it happens to be is because that's what people think the company is worth. Public companies have to release their finances on a regular basis and people can see exactly what they're worth at that moment. Why the prices fluctuate is because people speculate how the company will do in future. If they believe the company will do well in future they're willing to pay more for that stock as they're expecting the company to be worth more. If they're expecting the company to do worse they are willing to sell for lower to get rid of the stock. Then someone sees a possibility to make money by getting the stock at a discount. If your company isn't worth anything or in the brink of bankruptcy then getting rid of the shares can be hard.
