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Technically, a stock that never issues a dividend or buyback (direct or via aquisition) has no intrinsic value to the shareholder. I'm not sure the alarmism he

Technically, a stock that never issues a dividend or buyback (direct or via aquisition) has no intrinsic value to the shareholder. I'm not sure the alarmism here is justifiable. An argument that the boards of these companies are incompetent might be supported, if they go bankrupt as a result, but capital is still very cheap so it's hard to follow the logic.

dragonwriter 7y ago
> Technically, a stock that never issues a dividend or buyback (direct or via aquisition) has no intrinsic value to the shareholder. False, the intrinsic value of the share is the claim on assets of the corporation in the event of dissolution. Dividends and buybacks are different ways on which a firm performs a limited dissolution while remaining a going concern (chartering a corporation for a closed-ended purpose and dissolving it when that purpose is complete is also a way for investors to realize value, and it's still done, though mostly with LLCs rather than corporations in the narrow sense these days, and even moreso not with publicly traded corporations though there is no legal reason why it couldn't be.)