Linked Questions

12 votes
9 answers
8k views

What gives non-dividend stocks value to purchasers? [duplicate]

This is a question that has bothered me for awhile about the fundmental nature of the stock market as a whole, and no one has given a satisfying explanation. What is root cause of a stock having ...
dsollen's user avatar
  • 1,206
0 votes
1 answer
167 views

Is there a point in purchase a stock that will never pay dividends? [duplicate]

Let's assume theoretically that a company will never ever pay dividends. Is there any point to owning its stock? Eventually after a thousand years it will either grow to an extremely large size or it ...
JobHunter69's user avatar
-2 votes
2 answers
325 views

What does a company's equity (stock / share) actually cost? [duplicate]

A company may issue debt to raise fund and pays interest based on cost of debt (YTM), and this costs company money. And I can see how debt costs company. A company may issue stock to raise fund as ...
KIngCountry's user avatar
2 votes
2 answers
151 views

What is the intrinsic value of shares? [duplicate]

From what I understand is that Bonds and loans have extrinsic value, i.e if I decide to lend my money to someone or an organization, I will get paid a certain interest on the money that I lent, as ...
Subodh Bastola's user avatar
0 votes
1 answer
279 views

What drives the value of a stock? [duplicate]

So I was reading this article on 'Understanding the basics of Stock Owning' (1). It starts by saying, Exxon has 5.28 billion shares of stock outstanding, in other words, they have divide the company ...
MathsIsHard's user avatar
0 votes
1 answer
168 views

What is it about company performance that causes the perceived value of its stock to rise? [duplicate]

Many stocks don't pay dividends, and it's not like a shareholder has any direct financial gain from increased company earnings. Plus, they can only benefit from earnings if the company goes bankrupt ...
Zoovier's user avatar
4 votes
0 answers
126 views

If stock like GOOG does not pay dividends, what is the use of holding onto it? [duplicate]

I don't own many GOOG shares, but those that I do own have increased in value. It seems, though, that growth has flattened and the value is only fluctuating within a fairly stable range. Why should I ...
theillien's user avatar
  • 173
0 votes
1 answer
74 views

Dividends compared to stock prices [duplicate]

I'm new to stock market, and I'm wondering, if final idea behind stocks is that someday you will be paid back your investment in dividends and start making profit, how long does it usually take for a ...
Alebado's user avatar
0 votes
0 answers
64 views

Why would someone buy stocks that don't pay dividends? [duplicate]

I'm very confused about the reasoning to buy stocks without dividends. What can I use stocks for other than selling, if they don't pay me dividends?
WinnieThePooh's user avatar
248 votes
22 answers
104k views

If a stock doesn't pay dividends, then why is the stock worth anything?

I read somewhere that companies are not required to pay dividends to shareholders (this is correct, yes?). If so, then if company A never pays dividends to its shareholders, then what is the point ...
extremeaxe5's user avatar
  • 2,527
16 votes
11 answers
13k views

Does the stock market create any sort of value?

Sorry if the below seems like a conspiracy theory. It probably is, but I probably don't understand something. (This has bugged me to no end as long as I can remember.) Okay, so here is what I ...
Christopher King's user avatar
10 votes
4 answers
4k views

Why is the price of Berkshire Hathaway B class shares proportional to the face value and not the voting rights?

So there are BRK.A and BRK.B. The face value of BRK.A is 1,500 times of that of BRK.B, and BRK.A has 10,000 times the voting rights of BRK.B. BRK.A is normally traded at about 1,500 times the price of ...
Jaeseop Ahn's user avatar