Quote:

There's no way to "redeem" your shares. You can't go to the company with your shares and tell them that you'd like to trade in your hundred shares for, say, one of their computers.



If one is truly investing, then there's no need to redeem the shares. The purpose of owning them is to collect the income they (the company) generate (dividends). That's how stocks have worked since their inception, except (mainly) in the USA over the past decade.

So a share that pays a $1 dividend each year, is worth about $33 max, given that there exist safer ways to earn a similar 3% return.

Cheers


Edited by mlord (18/03/2006 14:05)