• TubularTittyFrog@lemmy.world
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    1 day ago

    stock market is a forecast of projected future profits.

    if investors thing a companies choices will make profits go up next year, they buy. if they don’t, they sell.

    • 1rre@discuss.tchncs.de
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      21 hours ago

      Ideally, yes.

      In practice, if investors think the stock price will be higher in the future, they buy.

      Dividends are such a tiny amount compared to the value of the share, that in reality it’s all just speculation on how people are going to speculate.