Shares don’t have any actual worth if an organization will not buyback / dividend : shares


Sure I do know concerning the https://www.investopedia.com/phrases/g/greaterfooltheory.asp

However when desirous about it, shares should not too removed from cryptocurrencies if we might make sure that the corporate will abide by these 3 guidelines:

  1. By no means have dividend

  2. Solely 49% of the general shares are for promote (you’ll be able to by no means management the corporate)

  3. By no means do buybacks

There are a lot of corporations that reply all of those 3 standards and but their shares have worth.

Is not it the identical a cryptocurrency mainly? lets assume I create “Ogabuga” forex and promoting it to the general public, the one worth it has is how a lot folks wish to pay for it, it will possibly’t generate worth by its personal.

Now lets take into consideration firm A.

Firm A points some quantity of shares however promoting solely 49% of it.

Firm A vows to by no means do any buyback or dividend.

Let’s imagine I purchased a few of the shares for 1$ every, now firm A made this 12 months a revenue of 10248191 trilion {dollars}.

Why would my shares be price extra? I can not do something to get cash out of this firm, I do not management it and the corporate does not redistribute the cash again to me.

My solely hope for revenue is a “better idiot” that can purchase the shares from me.



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