How are stocks not a ponzi scheme?
To start off, I want to say that I don't know that much about finances or the stock market, so correct me if my assumptions in this question are incorrect. The reason people buy stocks is to sell them later at a higher price (assuming they're not buying it for dividends), right? A stock's price goes up when more people want to buy that stock, but those people also want to buy that stock so they can sell it at a higher price later, thus resulting in a loop. It seems that this is just an MLM, you're rewarded for investing early and for other people investing. How is this model sustainable in any way?