How is it possible?

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A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay dividends, but investors are nonetheless willing to buy shares in them.

2007-10-03 14:01:51 · 2 answers · asked by who cares? 1 in Business & Finance ➔ Corporations

2 answers

Sure. They're expecting growth from the stock - an increase in price.

2007-10-03 14:31:10 · answer #1 · answered by Judy 7 · 0⤊ 0⤋

The only reasons a company should pay dividends is because they cant find investments that exceed their cost of capital or they have so much cash they could be subject to an unsolicited takeover.

2007-10-03 22:26:01 · answer #2 · answered by jeff410 7 · 0⤊ 0⤋