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No it isn't, the company's underlying assets and performance can increase the value of the stock by itself.
by defaultprimate 5y ago
No it isn't, the company's underlying assets and performance can increase the value of the stock by itself.
- tablespoon 5y ago> No it isn't, the company's underlying assets and performance can increase the value of the stock by itself. Realistically, how are those things in any way accessible to a regular shareholder without dividends? Even if a company liquidates, by that point it's probably racked up so much debt that the shareholders get nothing. I'm by no means an economic historian, but my impression is people used to value stocks as a claim on future dividends. Then many companies stopped paying them, but people still pretend like they still do.
- JohnPrine 5y agoThey are accessible to a regular shareholder through the ability to sell the shares
- bradlys 5y agoBut to who? Another person who has to perpetuate the scheme?
- JohnPrine 5y agoCan you read my comment here https://news.ycombinator.com/item?id=28721310 https://news.ycombinator.com/item?id=28721310 and let me know if it makes sense to you?
- tablespoon 5y ago> They are accessible to a regular shareholder through the ability to sell the shares But isn't that only true if they sell the shares back to the company in a buyback (which is essentially a dividend)? Otherwise, they're just accessing the proverbial greater fool's assets.
- JohnPrine 5y agoCan you read my comment here https://news.ycombinator.com/item?id=28721310 https://news.ycombinator.com/item?id=28721310 and let me know if it clears up my explanation?
- deleted 5y ago[deleted]