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Why does a company ever pay a dividend instead of reinvesting in the business?
Asked by cockswain (15276)
March 7th, 2010
I haven’t found a straight answer on this yet, and maybe it is just due to my lack of understanding of what a dividend is. My understanding is it is just basically a share of profits a company somewhat randomly decides to periodically pay it’s shareholders. I doubt this is actually a random process and would like a better explanation.
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