@StarkRG Well, that really depends on the setup.
With "#PublicCorporations", shareholders essentialy 'gamble' aka. "#invest" into a company under the theoretical risk of loosing their entire investments.
- #dividends basically act in lieu of a #loan with fixed payment plan: If the comoany runs well, those who put money into it get paid accordingly for basically having given said company a interest-free loan.
OFC #Investors expect their #Investment in the form of #shares to gain value over time instead so if they "cashout" (regardless if selling to someone else or a stck-buyback program of said #corporation to reduce shares in circulation & shareholders), so that's the pressure to make shure "#LineGoesUp!" and that works solely off #vibes with quarterly and annual numbers changing the mood...
- This is basically how any stock-based company works regardless if the biggest 24/7 globally traded GAFAM or the smallest pennystock sold via pink slips.
#NotFinancialAdvice