> I don't think this is right. I don't think it's just in the eye of the beholder, and it is not turtles all the way down. It may be 5,000 layers deep, with people believing what people will believe what people will believe what people will believe. But at it's base, at the bottom, is at least the idea of people who want stocks because you get payed dividends for having them, or might hope to get payed in the future.
Some people might do that. Others might hope that the company they're buying shares in will be purchased and they'll make money on the deal. Others might hope that they can simply sell the shares in the future for a higher price.
> Imagine I was a business owner and I made up a new thing called "bleg". The way this works is that I need a new roof for my factory, but I'd rather not borrow the money for it from a bank. Instead I tell all my friends and family, "hey! Give me some money for my business, and in return I will issue you shares of bleg!" And my family says, "oh cool! great! what does bleg get me?" And I respond, "well it get's you a percentage of the total outstanding bleg, of course!" And my friends ask if owning bleg will get them the chance to vote on how my store is run. And I say "No!" And they say, "If you do really well one year, can we have some of your profits?" And I say "No! You don't get that either!"
> No on would want bleg. And no one would think that others might eventually want it, so they should get in early before bleg blows up. No, bleg would flop.
Of course bleg would flop. You defined it to have no value. If instead bleg were a percentage ownership in the company, people might indeed buy bleg (and they do, but they call it shares of stock).
Some people might do that. Others might hope that the company they're buying shares in will be purchased and they'll make money on the deal. Others might hope that they can simply sell the shares in the future for a higher price.
> Imagine I was a business owner and I made up a new thing called "bleg". The way this works is that I need a new roof for my factory, but I'd rather not borrow the money for it from a bank. Instead I tell all my friends and family, "hey! Give me some money for my business, and in return I will issue you shares of bleg!" And my family says, "oh cool! great! what does bleg get me?" And I respond, "well it get's you a percentage of the total outstanding bleg, of course!" And my friends ask if owning bleg will get them the chance to vote on how my store is run. And I say "No!" And they say, "If you do really well one year, can we have some of your profits?" And I say "No! You don't get that either!" > No on would want bleg. And no one would think that others might eventually want it, so they should get in early before bleg blows up. No, bleg would flop.
Of course bleg would flop. You defined it to have no value. If instead bleg were a percentage ownership in the company, people might indeed buy bleg (and they do, but they call it shares of stock).