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Capital gains on no-dividend stocks - a theoretical question
You are overlooking the fact that it is not only supply & demand from investors that determines the share price:  The company itself can buy and sell its own shares. If company X is profitable over the long haul but pays 0 dividends then either Option (2) is pretty ridiculous, so (1) will hold except in an extreme "man bites dog" kind of fluke. This is connected with the well-known "dividend paradox", which I discussed already in another answer.