EXACTLY.
Is Stock Worth Anything ?
- Thread starter eves_banished_children
- Start date
EXACTLY.
You posed a philosophical question asking for a non philosophical answer?
Think of it as allocating Capital to a business you think can make the best use of it. Shorting a company can be seen as essentially taking capital away from a company. For a fun trade, short a company you don’t believe in and take those proceeds and plow them into a company in the same sector you do believe in. It’s essentially a reallocation of capital from a company who doesn’t use it as efficiently to one who uses it more efficiently.
No, I asked what advantage does stock ownership convey other than dividends and the chance to trade in the hopes of having a capital gain ? I followed that up with another question, if the stock doesn't have a capital gain and pays no dividend, what's the &^%$ing point ?
I admit that is a philosophical statement ... that all stock owners are nothing more than traders with different time horizons ... but it wasn't a philosophical question.
You are legally entitled to many rights as a minority stockholder. Just that you are not aware of them.
I disagree. What makes an apple with $0.50? It's the knowledge the buyers and sellers have about the value of that apple. If there are no capital gains, then the company is pouring money (if they make money) back into the company in order to make better capital gains in the future. Investing in your future is a good thing, unless the business model is dead. If the person at your proverbial convenience store understands this better than you, then maybe they are a buyer of your stock that you think is just a concept. It's about present value of the future value of all cash flows. And stocks fluctuate because everyone's opinion on the future value changes. And everyone's calculation of the cost of capital for the firm is different and changing. That effects FV and PV.
Anyhow, there's tons of literature out there that covers all of this. I mean, what is money?
Last edited:
Your thread is pointless and just illustrates your complete lack of understanding of the topic. I'd like to think you are just trolling the board but alas some of you are dead serious when you post these idiotic theories on this site.
Because someone named Nine_Ender said so, of course ... without an argument. You'd think you'd at least try to make an argument. Does this kind of BS work where you live ? You just walk into a room and ... everything is nonsense because Nine_Ender said so ...
