Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Why do investors buy stock that had appreciated?
From an amateur: Prices aren't entirely rational - they float, and the day to day prices of stock are an excellent example of this.  So how would you assign an appropriate value to it?  There is a logical minimum, the scrap value of the assets and the cash on hand.  However, that doesn't take into account the expectations for growth people have for that company.  If everyone thought a $100 mil company was going to be worth $200 mil by the end of next year, they'd still be willing to pay at a $150 mil price point now. That said, the market is big enough that it's easy enough to find someone who has those growth expectations.  They still expect it to be worth more in the future, and they'll buy it now.  And if no one buys at that price point, that's when prices start to fall.