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Can anyone outline how either of those are different than pre-IPO investors in WeWork etc cashing out on the retail masses? Or pretty much any non-dividend sto
by JohnJamesRambo 5y ago
Can anyone outline how either of those are different than pre-IPO investors in WeWork etc cashing out on the retail masses? Or pretty much any non-dividend stock that exists?
- 4512124672456 5y agohttps://en.wikipedia.org/wiki/Stock https://en.wikipedia.org/wiki/Stock
- IanCal 5y agoIf wework took the money from new investors and used it to pay dividends to previous ones, that would be much more like a ponzi scheme. Using the money to try and grow a business and a share of that business being deemed to be worth more is very different.
- anm89 5y agoYou just conceptually don't like markets. If you think the whole concept is a scam then just don't put your money in financial markets. According to history this is not a wise move.
- lima 5y agoWith an IPO, there's the expectation of eventually paying dividends from real revenue.
- hogFeast 5y agoSaying that a non-dividend stock is a Ponzi is like saying a private business that doesn't pay dividends is a Ponzi...it misunderstands how a company works at a fundamental level.
- ivalm 5y agoBuybacks are examples of return of money to investors without dividend. In fact, this is a more tax-efficient way to return money. But return to investors is not even the important thing, it is that normal businesses should get outside money by providing some kind of goods or services. The problem with axies is that they claim everything is exchangeable back into money so there is essentially no “outside” money.