In news:1184855851.709829.104260@[EMAIL PROTECTED]
<ireallyneedtoknow2007@[EMAIL PROTECTED]
> wrote:
> I know I'm missing something here, so I am posting the following. ...
> Let's say I buy a share of stock of a company on NASDAQ (for example)
> that does not pay dividends. I am now a part owner of the company.
Error #1: While that thought might give you a warm, fuzzy feeling, in
actuality you are the owner of a share of stock, not part owner of a
company. You may have a voting right in addition to the stock share.
> When the company makes a profit - or the prospect of future earnings
> increases, the stock price may go up.
"May" is correct: a stock's price may or may not be positively correlated
with "earnings" or the prospect thereof.
> So, my questions center around this: what am I buying when I buy this
> stock? Aren't I buying the hope the stock price appreciates so I can
> sell at a profit? ...
Your reasons are your own, and may be entirely different from some else's.
> In conclusion, how am I "investing" in anything?
You should consider the semantics of "investing" vs. "speculating".
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