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?
In: 76
Is the company profitable? Well, where does the profit go then? It’s either paid as dividends or it goes to growing the company. Either way stockholder gets their value. In dividends on in incrase of stock price.
Ah, the company isn’t profitable. But surely it will be sometime in the future, right? Right? Please tell me there will be profit down the road.
Latest Answers