Tuesday, November 17, 2015

If a company pays little or no dividends, what's the point of owning shares?

This may even be more of a philosophical question re: the public market, but if a company pays little or no dividends on earnings, what is the intrinsic value of shares?

Obviously there is value in that someone else is willing to buy them for a certain price, but I don't really understand why there would be demand for owning these shares in the long-run. Why is the public market so different than the private?

(sorry for the noob questions)



Submitted November 17, 2015 at 11:50PM by Blurry_Bigfoot http://ift.tt/1S3mYQ8

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