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.



Source link

Related articles

Commerce Surveillance Goes Actual-Time in New Platform From Analytics Supplier Trillium Surveyor

Hola Prime Evaluation: All You Want To Know About The Prop Agency Hola Prime Evaluation: All You Want To...

Hong Kong’s Regencell Bioscience triples in newest surge for a speculative inventory

Hong Kong SkylineNikada | E+ | Getty PhotosRegencell Bioscience Holdings, an early-stage, Hong Kong-based bioscience firm with no income, is the most recent speculative abroad inventory to draw an uncommon surge in buying...

Microsoft and AMD announce a "strategic, multi-year partnership" to design customized silicon for plenty of gadgets, together with next-generation Xbox consoles (Jez Corden/Home windows...

Jez Corden / Home windows Central: Microsoft and AMD announce a “strategic, multi-year partnership” to design customized silicon for plenty of gadgets, together with next-generation Xbox consoles  —  Xbox President Sarah Bond shared...

The ten Highest Yielding Dividend Champions | Yields Up To 7.2%

Revealed on June seventeenth, 2025 by Bob Ciura Dividends are a welcome signal for dividend traders. And dividend development is much more appreciated. When a inventory’s dividend per share is elevated, shareholders get a lift to...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com