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by jcampbell1
5186 days ago
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> Investors are not rational. Nor are they able to see the future. Future dividends have next to nothing to do with the present price of GOOG. Blah, blah, blah. Let's assume google issued a share that had 1/10 dividend rights and 1/10 voting rights. What would the value of the share be? A share of stock confers two things. Voting rights, and dividend rights. That is what people are buying. Voting, and dividends. > If they promise today that dividends will be equally split, what stops them from tomorrow saying that class C gets no dividends? bylaws |
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A lot more than 1/10 of a standard share, because dividends and voting rights are not the only things of value with respect to a company. In particular, there's also the potential for acquisitions and mergers.
> A share of stock confers two things. Voting rights, and dividend rights. That is what people are buying. Voting, and dividends.
A share of stock confers partial ownership of the company. That's what it confers. It might come with voting rights (or not), and it might come with dividend rights (or not).
Are you actually operating under the belief that the new class of Google will have zero value unless Google eventually issues dividends?
> bylaws
You mean the bylaws that Larry, Eric, and Sergey can change due to their supermajority voting control?