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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 Blackthorn 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.
Dividends are merely one of three ways that companies can return value to shareholders.
- euyyn 8y agoWhat are the other two?
- taejo 8y agoBuybacks are one, but I'm not sure what the incentive to Facebook would be to buy back non-voting stock.
- Blackthorn 8y agoBuybacks and mergers. The latter, of course, is rather unlikely.