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How is any tradable instrument any different. If you stopped the game most stocks would be worth 0 too as few pay any real dividend.
by rdtwo 5y ago
How is any tradable instrument any different. If you stopped the game most stocks would be worth 0 too as few pay any real dividend.
- frankbreetz 5y agoNot true, if own a certain percentage of the stock of a company you can auction of its assets and keep the money.
- skybrian 5y agoHere are a few ways they're different: - For most bonds, the game ends at maturity. - The money used for stock buybacks doesn't come from other shareholders, so that's not zero sum. - Many companies have substantial assets, so they do have liquidation value. However, it's true that most stocks trade far above liquidation value, under the assumption that the game will continue.