I’m sitting back doing some self-reflection (procrastination) when I start thinking about stocks. My basic understanding of stocks is that the owner ship of company is split up between owners of any class of shares (relative “power” of share determined by the shareholders agreement).
I can understand that if ever another entity is able acquire more than [insert percentage] of shares then they now control the company. I can understand a person wanting to share in the profits of the company and buys a share that pays dividends.
My curious question is why anyone not wanting to guide a company would buy shares in a company if those shares don’t pay dividends?
The only answer my brain came up with, which I hope is wrong. Is that the only reason to buy a share without dividends is the “gamble”. I equate the level of gambling to that of poker and not lotto numbers. Skill (example: ability to read and understand a company’s quarterly report) does influence outcome greatly but in the end it is still just a gamble (The McAmazon Apple Company comes out a minute after you made a purchase and says that they’ve fired every employee and will be replacing them with imaginary Umpa lumpas… … Gamble lost).
This gamble makes a lot of sense where over time skillful and knowledgeable people profit over the ones who only think themselves to be skillful and knowledgeable. This like poker makes a medium where people can make a living off the mistakes of others.
I understand that this (gamble) is a part of the stock market and I’m not saying it is good or bad (I really don’t care) I’m just curious if there is a reason other than the gamble to own a stock with no dividends (Note: not planning a hostile takeover or ever casting a vote)
I know this questions seems very vague and broad but I'm 80% sure I'm going to get a straight up "No. People only trade dividendless stocks with the hope of making a profitable trade nothing else." I ask because I am not 100% sure and I hope that someone will show me something new.