>But the value of a stock is not based purely upon the speculative market that might exist around it - at its root, it has an underlying fundamental value that is not driven by market demand.

Market demand for the instrument, that is, right? :)

I don't know -- I see a difference here, but it looks only nominal.

If I purchase shares in a privately-held small business that hits tough times, my claim on the output of that company can essentially evaporate -- they won't be paying dividends as no profit exists, I might not be able to sell the stock because no market exists for it, and once the company goes belly-up they pay the bank and lenders before shareholders get anything.

I'm sure a difference exists; I'm no serious investor, so it's easy for me to not see it.