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<blockquote data-quote="vantexan" data-source="post: 4546916" data-attributes="member: 24302"><p>And when stocks are traded demand drives prices.&nbsp; High demand, prices increase as available shares become scarce.&nbsp; Why is there demand?&nbsp; For the reasons you cited.&nbsp; Why do companies do better than before?&nbsp; Companies give stock options as incentives to exec&#039;s to produce.&nbsp; If they perform well and the company is more profitable the stock&#039;s value will increase allowing the exec&#039;s to exercise their options at a lower price and sell the shares at the current higher price.&nbsp; When dividends are paid quarterly big funds like Vanguard come in to buy a large amount of said stock and collect the dividend.&nbsp; Since there&#039;s a lot of stock out there paying dividends and the funds have X amount to buy with the best performing companies with the best dividends do the best.&nbsp; So when FedEx employees rage about wages being held down and retirement disappearing, etc it&#039;s because the stock is where the real wealth is at and executives are in it to get wealthy, not support employee lifestyles.&nbsp; As harsh as it may seem it also has the effect of keeping companies healthy and viable.</p></blockquote><p></p>

[QUOTE="vantexan, post: 4546916, member: 24302"] And when stocks are traded demand drives prices. High demand, prices increase as available shares become scarce. Why is there demand? For the reasons you cited. Why do companies do better than before? Companies give stock options as incentives to exec's to produce. If they perform well and the company is more profitable the stock's value will increase allowing the exec's to exercise their options at a lower price and sell the shares at the current higher price. When dividends are paid quarterly big funds like Vanguard come in to buy a large amount of said stock and collect the dividend. Since there's a lot of stock out there paying dividends and the funds have X amount to buy with the best performing companies with the best dividends do the best. So when FedEx employees rage about wages being held down and retirement disappearing, etc it's because the stock is where the real wealth is at and executives are in it to get wealthy, not support employee lifestyles. As harsh as it may seem it also has the effect of keeping companies healthy and viable. [/QUOTE]

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