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Stock price increases that don't lead to higher dividends eventually are indistinguishable from Ponzi schemes after the fact.
by saghm 9mo ago
Stock price increases that don't lead to higher dividends eventually are indistinguishable from Ponzi schemes after the fact.
- xmcqdpt2 9mo agoBuybacks lead to stock price increases and are indistinguishable from dividends in theory, and in practice they are better than dividends because of taxation.
- saghm 9mo agoThe problem I have with that logic is that it still doesn't really give any sensible reason for why the stock should have any economic value at all. If the point is that the company will pay for it at some point, it makes more sense for it to be a loan rather than a unit of stock. I stand by my claim that selling a non-physical item that does nothing other than hopefully get bought again later for more than you sold it for is indistinguishable from a scam.