Except that it just isn't true.

Imagine you bought a partial share of a boat or an airplane. Just because you can't redeem your share to the party from whom you originally bought it doesn't mean that your share is worthless or just based on emotion. You can sell your share to another person. The market mechanism is precisely what ensures that it retains value. You can sell it to someone else. Sure, you can't show up at IBM's door and ask for a computer, but you can sell your share to someone else, and that's just as good.

I understand the point you're making. But its not true that the stock is disconnected from the company after the IPO. If the market value of the stock does not reflect the value of the company, then the company can just buy back those shares to regain total ownership. In fact, the company WILL do this if there is too much differential between the market value and the book value of the stock. If the company doesn't, another company will. If they do, they need to redeem you for your shares because you own part of the company just as if you own part of a boat or airplane. If there is too much differential the other way -- the market is overvaluing the stock, the company can issue more shares. While the company only receives one cash infusion from the sale of shares, the company and the stock remain connected.

All the stock mechanism does is allow partial ownership just like partial ownership of a house, boat, airplane or any other asset. It may be a little *silly* that someone owns 1/10,000,000 of a company, but those people aren't the reason the stock exists anyway. It exists under the assumption that corporations or major buyers will exchange large blocks to assume equity significant enough to direct policy. Everyone else is just along for the ride. Your stock increases in value because the business increases in value to someone who may which to buy all or a significant chunk of it.

I don't think I'm missing your point, but please try again. I want to see your point of view.