When you own stock, you are part owner of a business. As the company earns money, it is YOUR money.
The company’s board of directors decides what to do with its net earnings.
?Some or all of the earnings may be re-invested in the company so it can grow, open new stores or make repairs. When this is done, the earnings money is used up but the company is more valuable by that same amount.
The per share price, having increased because of the earnings, retain that increase when the earnings are re-invested in the company.
?Some or all of the earnings may be given directly to the shareholders as dividends. They just mail you a check or send the money to your brokerage account. This makes the price of the stock decrease by the same amount as the dividend, so you have the same value in the total of stock and dividends.
Since you are an owner of the company, the members of the board of directors work for you. Each year there is an election and you can vote for the board positions, one vote for each share that you own.
If you don't think the present board members are running your company properly, vote them out. You can inform the board of your ideas, concerns or recommendations and these carry the weight of your shares.
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By just selling it?? Whats the point of that?? You buy it and hope people value more and sell it?? Makes no sense
