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<p>[QUOTE=&quot;mikem2000, post: 3135992, member: 30574&quot;]Well, this is a simplistic example but it makes the point.&nbsp; Lets say a small start up company has no assets, no income stream yet but a good idea and they float 5 million shares of stock at 1$ each and you like the company and buy 1,000 shares. Other folks buys thew share and they are no longer any available.&nbsp; The company now has 5 million in assets which they put to work.&nbsp; They buy raw materials and Manufacturer an item of value. The manufacturing process was a value add to the raw materials&nbsp; and the finished item has more value than the net sum of the raw materials. Bang, wealth has just been created. The company continues to create wealth and they buy more equipment, some buildings to expand manufacturing, stockpile some cash, invest in some of the created wealth and 5 years later instead of having 5 million in assets, they now have 50 million in net assets.&nbsp; Sooo, even if they even if the company did a total liquidation, each shareholder would receive $10.00 per share because the company grew.&nbsp; It is much more than perception that the share value went up.&nbsp; Now as I stated this is a very simplistic example as income stream (present and future) has a lot to to with the share price, but this is how the concept works.[/QUOTE]</p><p><br /></p>

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