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The stock price doesn't necessarily reflect the eventual issuance of dividends. A company that put in its articles of organization "We forbid ourselves from eve
by MichaelBurge 11y ago
The stock price doesn't necessarily reflect the eventual issuance of dividends. A company that put in its articles of organization "We forbid ourselves from ever issuing even the slightest dividend" I would expect to have a perfectly normal(nearly matching its dividend-allowing equivalent) stock price on the market, and wouldn't consider this abnormal or irrational on the part of the shareholders.
- djhn 11y agoThis almost makes it an entirely different kind of investment vehicle, one where the underlying value is more similar to bitcoin or gold - commodities commonly traded and used as a store of money - with the difference that investors do retain proportional ownership of the company's capital assets, ip, etc. which convert to cash in the (inevitable?) case of the company shutting down or getting acquired.