What are you buying when you buy shares in a company?

 What are you buying when you buy shares in a company? |

Morrisons is a pretty boring company, a local supermarket chain. No exciting tech in sight but I bought some stock as a recovery play after they were battered during Covid. The price was at a low and they pay a modest dividend so it was a fairly safe long term investment.
This morning I wake up and learn that someone wants to buy the whole company at a 30% premium above the closing price on Friday. The board have declined the offer as being too low and there may be a counter offer or there may not. If there is a counter offer that the board consider as reasonable then all shareholders will be asked to vote if they want to accept it or not.
So people who ask what you actually own when you buy shares in a company, the answer is that you own a tiny piece of the building, you own some stock on the shelves, you own a piece of the cash on the balance sheet and you have a right to some of the future earnings of the business.
Altogether, this is where the value of the company comes from and it is the price someone will have to pay to get our shares from the shareholders.
This also highlights that eventually fundamentals and true value bubbles to the top. Its all about spotting value and having patience.

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