stock market game. “it’s a great business decision that also benefits all of our...
TRANSCRIPT
Stock Market Game
“It’s a great business decision that also benefits all of our stakeholders”
- Martin Shkreli
Side note: A stakeholder is anyone that has an interest or is affected by a corporation. In other words, the stockholder isn't the only party having a stake in the corporation. Other stakeholders in a corporation include the employees, the employees' families, suppliers, customers, community, and others.
Corporation- form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter legal contracts, and sue or be sued.
Stock- certificate of ownership in a corporation
Common Stock- most common form of corporate ownership, with one vote per share for stockholders.
Having a few stocks in a company gives me power over a corporations decisions then? Well no. Not so much. Google has over 289 million shares. Apple has over 908 million shares outstanding (not owned by the company). Voting power is for major issues, usually to elect directors.
Preferred Stock- form of stock without a vote, in which stockholders get their investments back before common stockholders.
Dividends- check paid to stockholders, usually quarterly, representing a portion of corporate profits.
You get paid simply for owning the stock! For example, let's say Company X pays an annualized dividend of 20 cents per share. Most companies pay dividends quarterly (four times a year), meaning at the end of every business quarter, the company will send a check for 1/4 of 20 cents (or 5 cents) for each share you own.
Not all companies pay dividends. Google doesn’t, and Apple has only paid dividends since 2012. Why might this actually be beneficial in the long run?
Where are stocks traded? Most stocks are traded on exchanges such as
the New York Stock Exchange or NASDAQ. The NYSE is a physical location whereas NASDAQ is a virtual market.
The two other main financial hubs are the London
Stock Exchange and the Hong Kong Stock Exchange.
Mutual Funds- Money pooled from many people and invested together in a variety of stocks and bonds.
Mutual Funds explained
