The Picard Maneuver@lemmy.world to Microblog Memes@lemmy.worldEnglish · 3 months agoLine go uplemmy.worldimagemessage-square10fedilinkarrow-up10arrow-down10
arrow-up10arrow-down1imageLine go uplemmy.worldThe Picard Maneuver@lemmy.world to Microblog Memes@lemmy.worldEnglish · 3 months agomessage-square10fedilink
minus-squareammonium@lemmy.worldlinkfedilinkEnglisharrow-up0·3 months agoA dividend is just a forced sale of your stock
minus-squareammonium@lemmy.worldlinkfedilinkEnglisharrow-up0·edit-23 months agoImagine you have 10 stocks worth $10 each. Scenario 1: There is $1 dividend per stock. You now have 10 stocks worth $9 each for a total of $90 in stocks and $10 in cash. Scenario 2: There is no dividend but you decide to sell 1 stock, you now have 9 stocks of $10 for a total of 90$ in stocks and $10 in cash. These scenario’s are equivalent unless the stock wasn’t priced correctly.
minus-squareIlovethebomb@lemm.eelinkfedilinkEnglisharrow-up0·3 months agoThis is the stupidest thing I’ve read in a very long time. Why do you think it works like that?
A dividend is just a forced sale of your stock
What?
Imagine you have 10 stocks worth $10 each.
Scenario 1: There is $1 dividend per stock. You now have 10 stocks worth $9 each for a total of $90 in stocks and $10 in cash.
Scenario 2: There is no dividend but you decide to sell 1 stock, you now have 9 stocks of $10 for a total of 90$ in stocks and $10 in cash.
These scenario’s are equivalent unless the stock wasn’t priced correctly.
This is the stupidest thing I’ve read in a very long time.
Why do you think it works like that?