Timeline for Why is it rational to pay out a dividend?
Current License: CC BY-SA 3.0
7 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Feb 9, 2016 at 14:09 | comment | added | Dorus | @Pepone There is a trick called "Pyramid scheme" or "Ponzi scheme" that allows real $$ payout, and then scam you over even harder. Some of them flew quite high. | |
| Feb 8, 2016 at 21:44 | comment | added | Pepone | @i486 not sure you point is - having to buy the dog company's is an argument against index based funds. | |
| Feb 8, 2016 at 8:41 | comment | added | i486 | But in the real world, companies buy shares from other public companies too frequently. And for that reason when a big company fails, there may be collapse on stock exchange because many other companies hold shares and their stock price is significantly affected by the "bad investment". | |
| Feb 7, 2016 at 22:17 | comment | added | Pepone | Actually the discipline required to pay regular dividends ensures that the company is better run - you cant use accounting tricks you pay out real $$ - see enron for an example | |
| Feb 7, 2016 at 21:34 | history | edited | Will | CC BY-SA 3.0 |
A word
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| Feb 7, 2016 at 21:33 | vote | accept | lukstei | ||
| Feb 7, 2016 at 20:33 | history | answered | Will | CC BY-SA 3.0 |