The ultimate value of shares is in the dividends they represent, no?
No. The actual (and only) value of shares is investors’ expectation of the value of future appreciation in share value and of dividends. And there is not a constant relationship between share values and dividends: the price-to-earnings (P/E) ratio can vary hugely depending on the nature of the business and on investor sentiment-- P/E can be massive during a speculative frenzy, with no underlying reason besides wishful thinking.
kautau@lemmy.world 4 days ago
en.wikipedia.org/wiki/Greater_fool_theory
Once the bubble pops they’ll rugpull the same way they do crypto. Either that or it will grow so large that they convince someone to aquire them wholesale
monogram@feddit.nl 4 days ago
This is just every economic endeavour in existence nowadays, the issue with cryptocurrency is that it contains no guard rails (+ environmental issues)
Unless you work for a corporation, ask your employer what their exit strategy is.