5 ms·
If I own 5% of a laundromat that gives me 5% of it's profits each quarter, then I have money coming in. What's the point of owning 5% of a company that never pa
by drewrv 11y ago
If I own 5% of a laundromat that gives me 5% of it's profits each quarter, then I have money coming in. What's the point of owning 5% of a company that never pays shareholders a dime? It seems a bit like owning a piece of property on the moon.
- scott_karana 11y agoIt's speculative. You're really just hoping that one day, your company will IPO, and the initial stock price will be (much) higher than the price of your options. Or, if the company starts paying dividends, you could exercise your options and start receiving dividends, but I think that's unlikely knowing the sector we're in. :)
- hellbanner 11y agoBut why would someone else buy a stock.. if their only motivation would be that the price increases .. and they sell to someone who.. (GOTO start of post). Is this not the bigger fool theory?
- AnimalMuppet 11y agoThe company itself is worth something. It's worth whatever it's worth to someone trying to buy it, for example. As a general guide, it's worth some multiple of its annual profit, with the multiple depending on how fast it's growing and how much longer it's expected to continue growing.
- hellbanner 11y agoWith the idea that with 51%, you can control the company's choices, right?