MI233: Understanding Stock Prices vs Company Value w/ Brian Feroldi
The Intrinsic Value Podcast - The Investor’s Podcast Network
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Share Repurchases and Dividends and How They Impact a Company's Value
I think that's kind of a common misconception where investors might think that good news just automatically means that it will go up. I'm curious if you can talk about share repurchases and dividends and how those impact a company's stock price. Sure. Let's start with the easy one, the dividends. A dividend is when a company takes a portion of its profits and gives those directly to the shareholders of that company. The reason that companies do that is pretty apparent. It allows the investors in that company to realize a cash gain on holding that company's stock.
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