191–194 of 194 posts
Time to short major stocks?
Time to put your RRSP / 401k in cash, it's all starting to seriously teeter.
Earlier quoted context omitted.
Traditionally one is supposed to return money you don’t have anything better to do with to shareholders in dividends, but that is sadly out of fashion with tech companies.
Why would it be in fashion? If you want the money, then sell your shares and don't cause a taxable event for everyone else.
Another reason is that the shareholder functions more like an owner. Without a dividend the managers have a less clear responsibility to the shareholders. Maybe they act wisely, maybe not, but there is no real constraints on their behavior. The stock then acts more like a lottery ticket than owning a business, because you don't get anything out until you sell. Whereas, if the company pays you something because you own shares and therefore you own a piece of the profits, the ownership structure and the management structures line up better.
So this economist is saying that a deal is only good if it raises the subjective share price? That is some distorted world view of finance that aims to just repeat the ai bubble narrative that is popular these days
How is that “distorted”? The classic evaluation of a stock is (yeah I’m simplifying) is the present value of all future returns. If a deal doesn’t increase expectations of future returns, it would seem to be the market showing its lack of confidence in the deal
Earlier quoted context omitted.
> I disapprove of what you say, but I will defend to the death your right to say it. This is _actually_ what a respectable society does.
Who are you to regulate my booing? Free speech for me, not for thee?
Again, I might have misunderstood what booing means though (which explains the downvotes at least...)