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I know the whole market economics of worth more, and supply/demand, etc. But how do they physically gain value? For example, assume a basic example that in our world, we have a total of 100$ of liquid cash at hand, that is physical, existent money. I now have 1 stock worth a penny. Doesn't seem too bad. But when the stock price goes up, where does the money come from to pay the difference? When it's under a hundred dollars, you could claim from the physical assets, but what about when it goes beyond that price.

Another example, assuming the same constraints as above, i issue 1000 shares at a penny each, that's 10 dollars. If each share goes up by 50% that's 15$ total, which is still fine. But let's just assume the value goes to 11$ a share, where the fuck does the money come from to payout the dividends or price of the shares? There isn't enough physical money for the payout anywhere. I know the federal reserve runs cover a lot of times for this bullshit, but there just doesnt seem to be a long term solution to the stock roulette

I know the whole market economics of worth more, and supply/demand, etc. But how do they physically gain value? For example, assume a basic example that in our world, we have a total of 100$ of liquid cash at hand, that is physical, existent money. I now have 1 stock worth a penny. Doesn't seem too bad. But when the stock price goes up, where does the money come from to pay the difference? When it's under a hundred dollars, you could claim from the physical assets, but what about when it goes beyond that price. Another example, assuming the same constraints as above, i issue 1000 shares at a penny each, that's 10 dollars. If each share goes up by 50% that's 15$ total, which is still fine. But let's just assume the value goes to 11$ a share, where the fuck does the money come from to payout the dividends or price of the shares? There isn't enough physical money for the payout anywhere. I know the federal reserve runs cover a lot of times for this bullshit, but there just doesnt seem to be a long term solution to the stock roulette

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[–] • 0 pt

It's fairly simple really.

Somebody believes that a specific item has value. Look at art, dogecoin, gold etc.

Somebody believes, that at some time in the future, somebody else will believe that that same item will be worth more than what the original purchaser paid for it.

People their purchases.