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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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26549694 No.26549694[DELETED]  [Reply] [Original]

WHY DOES A NON-DIVIDEND PAYING STOCK HAVE VALUE?

AND DONT FUCKING SAY "because you own a piece of the company!" WHAT THE FUCK DOES THAT EVEN MEAN?

>> No.26549809

>>26549694
fuck off this isn't google

>> No.26549853

>>26549694
>cede and co

>> No.26549880

>>26549809
ANSWER ME

>> No.26549906

>>26549694
well if you ever accumulate 50%+1 of the stock, then you essentially own the company bro. until then, it means nothing.

>> No.26549918

>>26549694
If you have a non-dividend stock, its value comes from its net worth (if a value stock) or gross income (if a growth stock). Buy low, sell high, make money. This is the value in non-dividend stocks.

>> No.26549928

>>26549694
same reason governance tokens have value

>> No.26549956

>>26549918

Ok I have a stock. What can I do with it? If you say "you can sell it" then I'm going to shit my pants

>> No.26550014

>>26549694
2 ways. Could be seen as a ‘safe’ stock where you can store some of your money long term.
Or it could provide value by appreciating in value as the company performs well.

Simple shit anon, learn how to biz

>> No.26550055

>>26549694
burgers started that bad habit, ask them

>> No.26550115

>>26549906
Impossible to get 50% of trillion dollar companies. They will never be bought out. If you think about it, those shares are effectively worthless.

>> No.26550177

>>26549956
You can hold onto it, and let its value appreciate over time as the company grows and more people join in.

>> No.26550203

>>26549694
>>26549880
Growth.

>> No.26550263

>>26549694

ALL OF THESE ANSWERS ARE FUCKING STUPID, NONE OF YOU CAN JUSTIFY THIS SHIT

>> No.26550313

>>26550263
Growth.
Amazon.
Growth.
Anon, get a clue.

>> No.26550316
File: 303 KB, 2118x1124, Screen Shot 2021-01-25 at 8.01.06 PM.png [View same] [iqdb] [saucenao] [google]
26550316

>>26549694
Example A

>> No.26550324

>>26549956
kek

>> No.26550326

>>26549694
In theory they're priced against the dividend stocks and stock buybacks (like that growth company can be exchanged for this much of dividend stock money). In actuality they're powered by meme magic.

>> No.26550435

>>26550177

Ok so the only thing I can do with it is sell it. WHy the FUCK does it have value? The only thing the buyer can do is sell it. It's a fucking scam

>> No.26550460

>>26549694
Warren Buffet says the same thing, that a company is worth its dividend discounted to the present. Yes, Berkshire Hathaway pays no dividends.

Curious

>> No.26550511

>>26550435
You can also vote with it

>> No.26550566

>>26550511

If I buy a google stock you are saying I can go vote on internal decisions?

>> No.26550634

>>26550435

The price prevents big players/countries from acquiring a controlling stake. Back in the 80s company stock prices were too low, corporate raiders forcibly bought the stock to control the company and stripped the company and sold all the assets to the japanese for hefty profits.

>> No.26550657

>>26550634

Ok who gives a shit what does buying the stock do for me (don't say you can sell it later)

>> No.26550667

>>26549694
It used to mean nothing. Actually last year they started allowing leverage trading using stocks as leverage, so now it has some kind of collateral value.

>> No.26550728

>>26550566
You can vote on the members of the Board of Directors, so... indirectly, but yes.

>> No.26550734

>>26550657
Sorry that's all it is, you participate in having that percentage of the company as the value of the company rises. If Amazon didn't rise in value and stayed at 1997 prices some yahoo could buy it all.

>> No.26550766

>>26550728

Ok so how much stock do I need to make everyone vote to give me 5 billion dollars? Follow-up question: can I do anything with the stocks if I do not reach this threshold?

>> No.26550785

>>26550657
Ok who gives a shit what does buying the stock do for me (don't say you can sell it later)
Ok who gives a shit what does buying the cryptocurrency do for me (don't say you can sell it later)
Ok who gives a shit what does buying the bond do for me (don't say you can sell it later)
Ok who gives a shit what does buying the REIT do for me (don't say you can sell it later)
Ok who gives a shit what does buying the precious metal do for me (don't say you can sell it later)
Ok who gives a shit what does inflation do to me sitting in cash

>> No.26550801

>>26549694
Seriously, why does anyone buy amazon?

>> No.26550857

>>26549694
that it will grow and pay you a dividend in the future, or the managment team will do stock buybacks and push up the price

>> No.26550860

>>26550785

These all sound like scams so why participate?

>> No.26550887

>>26550115
if they were truly worthless then people would sell them, driving down the price so far that someone would be able to purchase 51% of them and assume control of the company.

>> No.26550899

>>26550316
>mfw bought in at $70
a-am i going to make it?

>> No.26550931

>>26550860
>Ok who gives a shit what does inflation do to me sitting in cash

>> No.26550945

>>26549694

A dividend stock is the same as a non dividend stock , they just have nothing better to do with their revenue (because they already dominate their market) so they pay it out instead of re-investing it into the company.

>> No.26550968

>>26550931

Ok what is your point dude?

>> No.26550985
File: 56 KB, 680x667, 1581936807054.jpg [View same] [iqdb] [saucenao] [google]
26550985

>>26550263
this anon is right omigoawd.

>> No.26551025

>>26550968
Listen close, poverty anon.. Global government just printed a metric shiton of cash and debased their currencies.
Invest. You must.
Or don't. And enjoy life!
You either get it, or you don't.

>> No.26551132
File: 28 KB, 512x308, us-dollar-debasement.jpg [View same] [iqdb] [saucenao] [google]
26551132

>>26550968
Found a nice leeeetle graphic for your room temp IQ. Ends well before 2020.
Enjoy!

>> No.26551161

>>26551025
>>26551132

Ok so why do stocks store value when they dont have any value?

>> No.26551245

>>26549694
>"because you own a piece of the company!"
Legally impossible. A corporation is a legal person. Slavery, owning a person, is illegal and therefore owning a corporation is illegal.

You own SHARES of the corporation, not the corporation itself. Any good business lawyer will tell you that.

>> No.26551346

>>26551161
This is your room temp iq kicking in again.
A stock represents ownership of a company. The company has value via physical assets, intangible assets (eg IP, patents), brands, existing contracts, etc. etc.
If a company goes into liquidation, all of its assets are distributed to its creditors.
Who is paid first, anon?
What do companies do in response to inflation, anon?