Prices signal the value behind an object, that people generally hold in consensus. While there may be disagreements, these price signals are the backbone of the economy -- and in the case of shares, they reflect the overall comparative value of the company in terms of the market. Or rather, they reflect the expectations of value that consumer-investors have in relation to the company. This is a critical feedback loop for executives, investors, and others when viewed over time.
In short, when you buy a stock for $1 and sell it for $2, the value that you are creating is that you are acting as a valuator. Your worth is to drive the process that defines worth.
Hence, you saw something, knew it should be more valuable, and hence held it and sold it for more value.
It ain't glamorous. It ain't sexy. But, it leads to riches because its critical.
And, you're manifesting the rewards to those who have worked hard to make the company better, faster, stronger, etc, etc, etc.
Last edited by Asmoday; 10-15-2007 at 12:46 PM.
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