2) Shares are worth nothing when people think that the company is worth nothing or less than nothing to its owners. This is the company with debts that exceed the liquidation value of irs assets with no reasonable plan to fix that problem. Usually such a company is bankrupt.
3) Money isn't some fixed quantity and wealth is even less fixed. Here's a cool thing to think about - A company has 200M shares outstanding at $50/share for a market cap of $10B. On Friday in the summer, everyone has gone home for the weekend but there are a few people left trading the stock who decide the shares should trade at $45 so 10,000 shares are traded at that price. So the stock settles at $45 wiping out $1B worth of wealth despite trading only $450,000 worth of stock,
4) "Value can fluctuate wildly, while worth is fairly constant."
Completely silly and something that his broker told him to quiet him down.
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the people they bought their shares from have their money if you buy something like a share it's a part ownership in a a business you can make a profit on that share if the business does well you share gets bigger you get dividends a small payment by the firm for your support and the value of your share rises however if that business does badly you share goes down possibly no dividends are paid your share drops the price of your share drops it can reach the stage where no one wants to buy the shares till they become worthless the business is probably bankrupt and is worthless that's why intense study is needed in where you invest in shares it's really a gamble pick poorly or unwisely you lose pick cleverly you win but its still a gamble we can't see the future things happen that can be unforeseen in truth it's a house built of playing cards it can become unstable and come crashing to the ground it has several times in history
You are confusing worth and value. They are not the same.
Take the shoes on your feet. They are worth what it would cost to replace them. Their value for walking along a warm, sandy beach is quite low ,but for walking in terrain that would cut bare feet to pieces,they are priceless.
Value can fluctuate wildly, while worth is fairly constant.
