All,
This may seem like an awfully naive question, but can anyone tell me why stocks have any value at all? If for example, a company pays no dividend (I.E no profit sharing) why do the earnings of a company have ANY effect on share price. I know that stock represents 'ownership' in a company, but in reality what does this amount to once the company can be more or less sure of 51% of its votes?
It seems in a way just a ponzi scheme - hope to get in early and hope that someone else buys you out higher. Am I crazy or just missing something (or both!)
This may seem like an awfully naive question, but can anyone tell me why stocks have any value at all? If for example, a company pays no dividend (I.E no profit sharing) why do the earnings of a company have ANY effect on share price. I know that stock represents 'ownership' in a company, but in reality what does this amount to once the company can be more or less sure of 51% of its votes?
It seems in a way just a ponzi scheme - hope to get in early and hope that someone else buys you out higher. Am I crazy or just missing something (or both!)