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+1
I didn't really understand how derivatives came into it.
Very large public companies often issue more shares and people buy these for the dividend income on the strength of their previous* history of distributing dividends rather than mad gainz.
*not talking about past performance, but some companies tend to do dividends more than reinvesting.
hugo7
That's the whole point, though. If there was no secondary market for capital it would be extremely difficult for any company or venture to raise primary capital. It's got nothing to do with derivatives.