[panarky]

> If apple shares could only pay dividends in more apple shares

Google shares don't pay any dividends at all.

Why exactly do people pay 1,000 USD for one share of GOOGL?

Are they buying an option on the right to receive dividends at some indeterminate point in the distant future?

Do they think they'll receive a fraction of the enterprise value when Google gets bought by a bigger company?

Will Google get sold off piece by piece and they'll get a pro-rata share of the liquidation proceeds?

Why would you pay "real money" for an electronic entry in the broker's ledger for an intangible asset that may never get converted back into USD?

[nsgoetz]

> Are they buying an option on the right to receive dividends at some indeterminate point in the distant future?

> Do they think they'll receive a fraction of the enterprise value when Google gets bought by a bigger company?

> Will Google get sold off piece by piece and they'll get a pro-rata share of the liquidation proceeds?

Yes, but also a bet on other people's demand for those things - its asset backed. Since they all are based on USD I think they're a little safer bet than a cat fad.

[panarky]

> Yes, but also a bet on other people's demand for those things

Exactly.

> its asset backed

Not really. Google's assets minus its liabilities are $139 billion. The value of its stock is $724 billion.

So 81% of the company's value isn't "backed" by anything -- not the company's assets, not the promise to pay dividends in the future, nothing.