Why doesn't anyone understand that a stock isn't just a ticker symbol with numbers flying around but an ownership in a business?
3 Answers
because not many people know how to manage or influence management
Most people realize that owning a stock means buying a percentage of ownership in the company, but many new investors have misconceptions about the benefits and responsibilities of being a shareholder. Many of these misconceptions stem from a lack of understanding of the amount of ownership that each stock represents. For large companies, such as Apple (AAPL) and Exxon Mobil (XOM), one share is merely a drop in the pond. Even if you owned $1 million worth of shares, you'd still be a small potato with very little equity in the company. Since it represent very nominal percentage that's the reason retail investor don't feel associated with time company.