3 ms·
but shares aren't an IOU. They are points that represent a company, and can be traded at a later date dependent on the market. They can't just redeem it for a p
by maneesh 9y ago
but shares aren't an IOU. They are points that represent a company, and can be traded at a later date dependent on the market. They can't just redeem it for a promised cash amount at a later date -- they are tradeable at what someone else is willing to buy -- with no guarantee that someone else will be willing to buy...
- perl4ever 9y agoI disagree, somewhat. Shares are an "I owe you dividends, if and when" and they also represent voting control that a buyer could use to extract value from the company. Those both mean the holder of the paper is owed something even if it's much more vague than a bond. I guess there are stocks these days that have neither dividends nor votes, though. That seems like a scam though.