This is a great explanation. Remember that the value in a stock is that you&#x27;re owning X% of a business just like if you owned 100% of a coffee shop.<p>If you buy a coffee shop for 10% @ $100,000 that makes $10k&#x2F;year you just bought a company for a P&#x2F;E of 10. The value of a stock in that company is in the growth of that 10k over time that is either paid as a dividend or retained and valued in to the price of the stock. If you don&#x27;t make money, or make much less than what you could be expected to grow, their value will fall.