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Because there's uncertainty in the world. People lie, the world changes, etc. Company A says no dividends ever, while maintaining soaring stock prices. Company
by tabeth 9y ago
Because there's uncertainty in the world. People lie, the world changes, etc. Company A says no dividends ever, while maintaining soaring stock prices. Company A fires its CEO and Company A gets a new CEO. The new CEO doesn't say there will be dividends, but you assume they'll turn around so you buy, etc.
- zodiac 9y agoWell then the value of that stock reflects the future dividends of that stock in that scenario, weighted by how likely that scenario is to happen. Not sure what your point is then.