Talk:Stock

I wanna know types and subtypes of stocks Uday Maru (talk) 11:51, 26 December 2021 (UTC)

I tried to remove the following paragraph earlier this year but was blindly reverted.

Stocks are a function of capitalism, and therefore the stock market operates by the price mechanism: a stock cannot be classified as an investment unless it pays a dividend – the standard dividend yield being 2% – otherwise, it must be classified as a speculation (gambling). However, if one decides to reinvest the dividends, it is not speculation, and assuming for ceteris paribus, this will lead to an exponential growth of FV = P*(1+r/m)*m*t, where P is the initial investment, r is the yield, m is dividends per year, and t is number of years. A "dividend king" is a stock which has had an increasing or constant dividend yield for over 50 successive years.

The paragraph is nonsense because:

• a stock which reinvests all its profits (aka a growth stock) is still an investment and is not gambling
• there is no standard dividend yield
• the formula is nonsense and takes no account of market fluctuations
• the "dividend king" sentence is completely made up

Can some please ensure it is removed and not put it back again just because it was an IP who corrected the article. --195.206.172.158 (talk) 09:35, 3 November 2022 (UTC)