Friday, December 15, 2017

If a stock doesn’t pay dividends, then why do people buy it?

Assume we are talking about a company who re-invests profits for growth instead of paying dividends to shareholders.

If a stock price isn’t directly correlated to the companies profit, but supply and demand for the stock, then why do people buy the stock if it has good growth prospects but doesn’t pay dividends?



Submitted December 15, 2017 at 10:15PM by Throwaway_iKept http://ift.tt/2CDnEuA

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