investing question

[i***@yahoo.com]

I know I'm missing something here, so I am posting the following. Let
me start off by saying I have not "lost" money in the stock market -
I'm just an average guy who works for a living and contributes to his
401K. These are just a series of questions I have had for years and
cannot seem to get a satisfactory answer.

Let's say I buy a share of stock of a company on NASDAQ (for example)
that does not pay dividends. I am now a part owner of the company.
When the company makes a profit - or the prospect of future earnings
increases, the stock price may go up. I have a paper profit. The
company does not give me a piece of the real profit. It may be
reinvestmented in the business, etc. But I don't get any of it. I do
get the appreciated value of the stock. Now, I sell the stock and get
my profit. The guy who buys my stock hopes the stock appreciates as
well.

So, my questions center around this: what am I buying when I buy this
stock? Aren't I buying the hope the stock price appreciates so I can
sell at a profit? I am not going to ever actually recieve any of the
profits the company makes - no dividends. In fact I am not investing
in the company at all. The company doesn't get the money when I buy
the stock - the stock wasn't sold to me out of the company's treasury
(the seller of the stock gets my money) - and even the cpmany does
sell the stock to me, I still do not get a portion of future
profits.

In conclusion, how am I "investing" in anything?

[ynotssor]

I know I'm missing something here, so I am posting the following. ...
Let's say I buy a share of stock of a company on NASDAQ (for example)
that does not pay dividends. I am now a part owner of the company.

Error #1: While that thought might give you a warm, fuzzy feeling, in
actuality you are the owner of a share of stock, not part owner of a
company. You may have a voting right in addition to the stock share.

When the company makes a profit - or the prospect of future earnings
increases, the stock price may go up.

"May" is correct: a stock's price may or may not be positively correlated
with "earnings" or the prospect thereof.

So, my questions center around this: what am I buying when I buy this
stock? Aren't I buying the hope the stock price appreciates so I can
sell at a profit? ...

Your reasons are your own, and may be entirely different from some else's.

In conclusion, how am I "investing" in anything?

You should consider the semantics of "investing" vs. "speculating".