>>1065406 Because they have cash, land, machines and other things of value, and if the company is profitable they can buy more of those things. Not to mention the potential to start paying dividends in the future.
>>1065406 Management of publicly traded companies are legally obligated to act in the interests of shareholders to the extent they are able, and for non-dividend stocks this means doing whatever it takes to convince the market to pay a premium for their shares.
Also you're technically entitled to assets the company holds should it sell everything and close up tomorrow so there's that.
>>1065406 They should have more value. Paying dividends is almost always a huge neon sign that the company is stagnant. No ideas. The money isn't going to expansion or R&D or new equipment.
It's an uninformed investor that thinks dividends are desirable. It is quite literally the company paying you to keep their stock so that it doesn't devalue.
Look at how "innovative" Apple has been since introducing dividends. Or notice Microsoft started AFTER losing so much market share. I'd rather my stock value go up via a company with a plan than one that knows in X years they'll flatline unless someone comes up with an idea.
But hey, this board is full of millionaires that know everything. I'm just a guy that made a modest sum from seeing the recession coming and will soon make another from the next bubble that's starting to pop. A few more and I'll have a comfortable retirement which is all I want.
>>1065406 You're expected to sell it at a higher price than if you bought it. >>1065719 Yeah, the .5% dividends are basically worthless, but as long as the stock price keeps up with inflation, a company with a hefty dividend will pay itself off after 5-10-15-20 years.
>>1065406 say for example, a non dividend stock dropped to a fraction of a penny. You could then go and buy every share of this stock. This would make you the owner. You now own a company and could get it to start paying a dividend. A stock has value because the company has value.
>>1066253 if it goes under then common shareholders are last in line behind creditors but they get whats left. Besides, its possible a business will wrap things up without debts if they think that their line of work is over.
>>1066234 debts and wages aren't counted in profits. Tax is a % and then preferred shareholders are a % of that. Common shareholders split the rest. This is commonly more than a bondholder would get from the same company.
>>1065575 I meant what ties non dividend stocks to money. If it's because the stock price will go up in the future, it's a self serving cycle, people buy stocks and they go up and other people buy stocks and they go up.
>>1066335 That's pretty much it. It is not unheard of. If they are selling stocks they are looking for cash to invest in the biz, to grow the biz. That is what you are buying, a potential for growth. Unless you really just want to own stock in a stagnant operation. Or of course it could die then you lose value since liquidation is a loss.
Stock market is like, a casino for fancy people. The bottom rung of society plays lotteries. There are of course employees and owners who own stock and other angles.
>>1066358 But that's circular reasoning, isn't it? Growth is determined by it's stock price. It can grow in other ways like physical assests as >>1065521 said but you'll never be able to cash in on those.
>>1066273 I meant that in the event that the company goes under and liquidates. all of those obligations come first and common shareholders get whats left. I'm asking how often there actually would be anything left for the common.
>>1066234 >how often do common shareholders actually get anything though? after paying debts, taxes, wages, and the preferred shareholders, is there really ever anything left for common shareholders? Probably rarely, and you wouldn't generally expect to get what you invested back anyway.
>are you trolling? thats like the definition of stock. Well OP might not have known and thus his question, else it would have been obvious why shares are valuable, no?
>>1066398 Depend entirely on the level of debt. I have no personal experience and I doubt many do, most sell earlier than that. However you should remember by the time a company has been delisted and liquidated all the other shareholders will know as well and want to sell. You might be able to buy all of the remainder of the company for cents or even rupees.
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