Why does the share have a certain value?
A common question is why the shares on the stock market costs the way they do. Answer: The price is based on the future dividends expectation from the company. —”What? But the dividend is so low and I don’t think that this is true. The price is much higher than any dividends I’ll get from it. And what about when companies doesn’t pay any dividends at all? Especially certain tech companies. How can they have that value without dividends?” First, let’s clear out what a dividend is. It is a…read more