create account

Question answered on Musing.io by markgritter

View this thread on: hive.blogpeakd.comecency.com

Viewing a response to: @seeee3/f3mkcmcn5

· @markgritter ·
$1.36
Question answered on Musing.io
<a href="https://musing.io/q/seeee3/f3mkcmcn5">View this answer on Musing.io</a>
👍  , , ,
properties (23)
authormarkgritter
permlinkp3fnfty2x
categorymusing-threads
json_metadata"{"app":"Musing","appTags":["market"],"appCategory":"market","appTitle":"Why does the demand for a stock that does not pay dividends increase (thereby raising the price of it)?","appBody":"<p>Speculative investors purchase stocks in the hope that the price will increase.. &nbsp;A stock which does not pay dividends today could still increase in value if:</p>\n<ul>\n <li>the company engages in stock buybacks, decreasing the number of available shares, or</li>\n <li>it starts paying dividends, or</li>\n <li>it becomes a merger or acquisition target (so the current shares will be bought for cash or swapped for shares of a different company, at a premium), or</li>\n <li>a Private Equity firm takes the company private (again at a premium to the current price), or</li>\n <li>other investors decide that it is a worthwhile investment</li>\n</ul>\n<p>Ultimately the stock is driven both by fundamentals (cash flow) and by speculation (attempts to predict what other investors will do.) &nbsp;Dividends alone don't come close to showing the full picture, as they are just one of the possible ways the company's cash flow could benefit investors.</p>","appDepth":2,"appParentPermlink":"f3mkcmcn5","appParentAuthor":"seeee3","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
created2018-11-18 08:48:42
last_update2018-11-18 08:48:42
depth2
children0
last_payout2018-11-25 08:48:42
cashout_time1969-12-31 23:59:59
total_payout_value1.019 HBD
curator_payout_value0.338 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length80
author_reputation7,057,249,855,552
root_title"Musing Posts"
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id75,484,766
net_rshares2,136,660,751,610
author_curate_reward""
vote details (4)