Question about the stock market?

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I heard that companies only make money when they first go public (IPO). If that is true, then why does a company's performance drive the direction of the stock and why do the companies pay dividends? I am just a little confused. Thanks in advance for all the answers.
 
They pay dividends because that's a sale-point on having sold the stock. They only have to pay based on how much they've prospered, so it's never a payment that they can't handle.
 
They pay dividends because that's a sale-point on having sold the stock. They only have to pay based on how much they've prospered, so it's never a payment that they can't handle.
 
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