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by jeromec
5568 days ago
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Yes, that's essentially correct. And that's why stocks can plunge and lose practically all (or all) their value relatively quickly, as happened to General Motors and many banking stocks in 2008, for example. Edit: To clarify, even when a company pays dividends which holding the stock entitles you to you are speculating the company will continue to pay, or be able to pay, which is why you continue to hold the stock. This is why stocks are risky -- they have no guaranteed value (or backing) and can crash theoretically at anytime. |
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