3 ms·
> If there's no increase in stock price Then the value of the company (and the expected dividend stream) presumably fell, in real terms, because inflation is t
by bzbarsky 8y ago
> If there's no increase in stock price
Then the value of the company (and the expected dividend stream) presumably fell, in real terms, because inflation is typically nonnegative.
- xapata 8y agoThere's also depreciation. Most assets tend to decline in real value while simultaneously inflating. Companies may have a period over which the value appreciates, but the evidence points to eventual obsolescence. They'll probably liquidate their assets and give one final dividend at that time.