It can be defined by the net present value of the future dividends of the stock. Alternately, it can be determined by the per-share liquidation value of the company’s assets (after creditors are paid).
So if the stock does not pay dividends, and never will, and the corporation’s assets equal its liabilities, and always will, then the appropriate value of the stock is, in fact, zero? (Well, there are voting rights, but still...)
It can be defined by the net present value of the future dividends of the stock. Alternately, it can be determined by the per-share liquidation value of the company’s assets (after creditors are paid).
So if the stock does not pay dividends, and never will, and the corporation’s assets equal its liabilities, and always will, then the appropriate value of the stock is, in fact, zero? (Well, there are voting rights, but still...)