I understand that a share of stock represents a share of ownership in a company. But if dividends are not paid, what is the actual value of that stock? Why does it have value? The company making more money does not flow to me because I own the stock. So is it basically just like owning a baseball card in that if the player (company) does well more people want to collect (own) their cards (stock) and this the price goes up?
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The shares that you own are valuable because of the “full value of all of the assets” + potential future earnings that the company can make using those assets. so if the company is being bought out the agreed upon value is based on the full value of the assets, that’s the only reason your shares are worth anything. Basically the shares are backed/valuable due to the companies assets and potential earnings
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