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> "The company has sold stock to investors with the sole purpose of increasing the value of the stock." I know they're not popular, or exciting like a stock va
by roc 17y ago
> "The company has sold stock to investors with the sole purpose of increasing the value of the stock."
I know they're not popular, or exciting like a stock value swing, but dividends still exist, right?
- mbreese 17y agoYou're right... I should have said something like "increasing shareholder value though the increase in value of the stock or profit distribution via dividends". I actually think that more companies should give dividends. I can see why companies like to have billion dollar war chests, but at some point you have to wonder when enough is enough. I mean, even Microsoft was forced to start paying dividends. Then again, their stock price has been pretty flat for the past few years, so that might be the only reason to hold it.
- tokenadult 17y agoBut making a stock a stock that can pay out dividends versus a stock that cannot pay out dividends is also increasing the stock's value.
- dschobel 17y agothe line you see over and over again in IPO filings is "shareholder value" and not "value of the stock" so dividends fall into the former category. See Google's S1 (IPO) filing for reference: http://www.sec.gov/Archives/edgar/data/1288776/000119312504073639/ds1.htm http://www.sec.gov/Archives/edgar/data/1288776/0001193125040...