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This may be a dumb question but Ill ask anyway...
Im new to investing in stocks and I have a question that has been bothering me through all my reading....
Why do people buy into stocks when there are no dividends paid out? I understand that the stocks go up and you can sell at that point and make a profit but what motivates anybody to buy the stocks at higher prices when they make no extra money doing so? The share prices raise because people are willing to pay extra for them right? So what if the company has higher profits, does that benefit the stock holder if there are no dividends or can the company somehow say the stocks are worth more and raise the value of them?
Thanks in advance for any answers that might clear this up for me!
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