Why do shares prices' rise and fall?

Hi. If someone buys a share from me in a higher price, whats the advantage he is gonna get? If he is going to sell it to some other guy where does the chain end? And if I hold a share for a very long period, is dividend the only thing what i will get as profit?

If someone buys from you share at higher price it could be that he/she wants to have more shares in order to participate in control of company. In that case he/she is willing to pay more than current market price.

But most of traders just want to make profit: buy at lower price, sell at higher price. In that case, one who bought share from you expects that prices will rise more, but no one can tell for sure what would happen next.

If you hold share for very long time, you will have a profit if company works well: price of share will rise and maybe company will give to shareholders dividend too.

Hey thanks tanalaysis. That gave me a good idea.
"If you hold share for very long time, you will have a profit if company works well:"
This profit you mean is nothing but the dividend, right? Where can i get the details like when a company will announce its dividend, bonus etc.?

You can make a profit of price change and dividend (if there is any).

For example:
1. You have bought MSFT (share of Microsoft) on price 21.5$
2. After few months Microsoft releases new OS which appears to be very good and users start to buy it rapidly.
3. As consequence, price of MSFT rises on 26$
4. You sell it. Your profit is (26$-21.5$=4.5$ per share)

In this example you see how you can earn money without dividend.

So you can earn money on price change (most of traders are trading to earn money on that basis), but you can also earn money on dividend.

Not all companies are giving dividends. Some of them can decide to invest money in their business and not to share it with shareholders.

I don't know where you could find out when some company will give dividend. I suppose that it could be web site dedicated to shareholders of that company.

Thanks friend...