Quote:
Originally Posted by Slava
Dividends are a percentage of profits. So that money is already in the economy and already circulating. Someone has spent that money somewhere for the company to gain it and distribute it (in the common sense of dividends, and not companies using other methods to maintain them).
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That's simply not true.
Companies and economies grow by creating value.
If I take $100 and use it to dig a hole and find $1000 worth of gold I've added $900 worth of value to the economy.
If I created a company with 10 investors, who each put in $10 then they all sold their shares for $20, they've all made $10. Now I find the gold and divide it up equally between the current stock holders and dissolved the company they've each gained $80, and no one has lost a thing. It's not a zero sum game.
If what you're saying is true, then neither the economy, nor the stock markets could never grow, which is plainly false.
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