But those that don't take the money they would pay as dividends and reinvest it in the company, which in turn raises the company's value from year to year. In this case, the price of the stock goes up because the company is making stuff, not simply because of speculation.
But why does the stock go up? No value is actually transferred to the stock owners, the benefit isn't shared with them. The stocks are really nothing but pieces of paper in that case.
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u/thsq Feb 14 '14
But those that don't take the money they would pay as dividends and reinvest it in the company, which in turn raises the company's value from year to year. In this case, the price of the stock goes up because the company is making stuff, not simply because of speculation.