Hi! 14-year-old newbie here

Daniel · Guest

Hi! I am 14 and I think I want to become a stock investor. I started researching about the subject, and the problem is I don't get something that I am naturally supposed to get. So, here it is:

Let's suppose there is a company making dramatically HUGE profits and has a LOT of money in it's hands. Then a LOT of investors would naturally like to buy some stock of that company. But if we assume that the company NEVER and WILL NEVER pay any dividends to shareholders and NEVER and WILL NEVER issue any paybacks, my question is: Will the price go up or down or stay the same? Summarizing: What I mean is, what would happen to the share price?
This really confuses me because the first thing investors look at is the P/E ratio, the companies' financials, etc, but the thing is, why should they GIVE a darn about that stuff, if they won't get that money for themselves?!

Of course, some people could say: Well, but the majority of shareholders will usually want the company to pay dividends, or issue paybacks, and decide so, because they will benefit from those actions themselves. OK! But then let's suppose the majority of the shareholders do not want the company to issue any paybacks or dividends because they want the share price to go down, so that they can get the company at a cheap price, so that they can then decide to issue HUGE amounts of dividends and get all of that company's money for themselves, thus making a really nice profit.

So: What will happen to the share price if the company doesn't pay any dividends or issue any paybacks? If the answer is "It will go down" I then ask: Why do people then automatically go for those very wealthy companies, if they don't issue any paybacks or pay dividends?

I hope someone can help me out,
Daniel

Lefty · Guest

Daniel, you need to clean up your language.

TimThompson · Joined: 09 Sep 2004 Posts: 38 Location: Houston, Texas

Daniel,

I am one of the moderators of this Forum and we will not allow profanity.

I have cleaned up your statement above so that it is less offensive.

We welcome your participation but please don't do it again.

Tim Thompson

Daniel · Guest

Hey guys, sorry, won't happen again.

Daniel · Guest

Hi! I apologize again for my language... What I wanted to say is that I already got the issue solved. Thanks anyway for your time.[/b]

candlestick1 · Posted: Sun Mar 26, 2006 7:44 pm Post subject: Testing

Test Test Test

candlestick1 · Posted: Sun Mar 26, 2006 7:46 pm Post subject: Another test

Anothere Test Test

candlestick1 · Posted: Sun Mar 26, 2006 7:48 pm Post subject: Test 3

Test 3 3

TimThompson · Joined: 09 Sep 2004 Posts: 38 Location: Houston, Texas

Test 4