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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