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[–] 2 points 6 months ago* (1 child)

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.

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  • [–] 2 points 6 months 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.

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