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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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[–] • 1 pt

There really isn't any "money" as in gold/silver/tangibles to cover this stuff, it's all because the government(s) say their fiat is worth something.

It's all just theoretical money until it's cashed in. If all shareholders tried to cash in at once, the price would crash because of a market glut and lack of buyers.