Assume that a company doesn't pay dividend to its shareholders then what does it pay to its shareholders.
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Dividends
Assume that a company doesn't pay dividend to its shareholders then what does it pay to its shareholders.
so they can buy more shares.
Nothing.......
A company that does not pay dividends, pays nothing to shareholders. The only money you make or lose is based on the share price. Dividends are the only actual payouts for stock owners. Just because you buy a stock does not make you entitled to 'profit sharing.' You are simply buying a piece of paper that says you own a share of the company. You just hope the company is a good one so the price will go up.
There are plenty of books out there on fundamental analysis as far as trying to determining what a company is worth so you can look for bargains in hope the share price rises. Or you can learn to read the stock chart itself and play the technical analysis, and trade based off the price action. So first, you just have to learn the basics and figure out which way of investing is right for you. Some traders use a combination of both.
Look at it as comparing a company to a person.
Imagine you are earning $2000 last year, this year you're earning $4000.
It would appear that your net worth (share price) has increased. Provided you don't overspend
