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> And since Facebook does not pay a dividend, owners of class A shares have to ask themselves how they expect to profit other than relying on a greater fool to
by jlarocco 8y ago
> And since Facebook does not pay a dividend, owners of class A shares have to ask themselves how they expect to profit other than relying on a greater fool to take their current shares off their hands at a higher price.
To be fair, isn't that how most money is made in the stock market?
- brisance 8y agoThere's a difference as I explained earlier. In a conventional company ownership structure, owning a share means you can vote on company matters, to elect directors to the board etc. However in the case of FB, the outsized voting powers of class B shares are not available to the public. In other words the shares have no inherent value. An investor might be wiser to invest in FB bonds since they are paid ahead of holders of equity should FB implode.