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Why do people even buy stocks to begin with?

Why do people buy stocks to begin with? For example there are companies out there that don't even pay dividend. Why Do people even buy stocks like this to begin with? What do they get out of it? Are they just buying so they can say they are a proud owner of XYZ company? It doesn't make any sense. 

And if people don't get anything from buying the stock, then why does the share price increase the begin with? I know the concept of supply and demand, but that still doesn't make any sense. 

Purchasing a stock that does not pay a dividend, does somebody from the company come out to your house five times a week and give you a full body massage? I don't understand why somebody would buy something that does not give them anything.

6 Answers

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  • ?
    Lv 6
    1 month ago

    They are an investment that means you own a share in the company that issued the stock. Stocks are how ordinary people invest in some of the most successful companies in the world. For companies, stocks are a way to raise money to fund growth, products and other initiatives.

  • Steve
    Lv 6
    1 month ago

    You have to learn that dividends arent the make or break of a stock. Turning your $500 into $2,000 doesnt make sense to you?

  • Anonymous
    1 month ago

    Because its a legal pyramid scheme, you buy from someone else who sold to you at a profit, so you can turn around and sell to someone else even higher, and they can sell even higher, until the day when there is no one left to buy and the price drops, and someone is left holding the bag. The whole system has worked so far becuase most people have held stocks for many years, and the population has continued to rise, if the population drops, it will collapse.

  • 1 month ago

    Some companies do not pay dividends but rather take their profits and reinvest into their company by investing in new equipment, or expanding into new locations, or new sectors of the market, research and development. Doing this could lead to better growth and profits over the long term.

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  • 1 month ago

    They do it because they think they will be able to sell the stock later for more money and make a profit.  That's works sometimes.  Not always.

  • Anonymous
    2 months ago

    You're an immature child, that's why.

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