Author Topic: Dividends are paid out in ...??  (Read 1419 times)

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Offline santaclause102

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Merockstar brought up that question: How and in what are dividends paid. There are basically two options: Shares in the company itself (eg. Idea5Coins) or in another currency (eg. xts, btc or bts me). Is there any clarity yet about this. Here were my thoughts:
If dividends are paid out in Idea5Coins, there are different options:
- pay from the issuer's funds he held for a long time (should work)
- buy shares from the open market (vunerable to insider trading, incl. the issuer fooling his investors)
- create new shares (can't work, market cap shouldnt change)

But paying dividends in Idea5Coins might always be problematic if the market cap isnt big and the price is volatile. 

Another requirement for paying in Idea5Coins might be that shareholders/investors not only profit from the promise to pay out profits in Idea5Coins but also own the company in every other respect (own the Idea5Coins manufacturing machines and get their shares when the company is sold). Otherwise there is no value outside Idea5Coins that would give it value in the first place.