Gordon Gekkos(Millennials google it) of Era explain stocks to me.

[Slayven]

How dividends work, like if i had a single share of Disney they would still be required to send me a check?

Stock splits, how can you suddenly make more of a company?

And do hostile takeovers work like movies? Like if I was able to get 51% of Proctor and Gamble I would own it?

 

[Fat4all]

millennials are like 30

 

[Deleted member 8112]

.

 

[Burt]

If you have to ask what a Gordon Gekko is, you can't afford it

 

[Xe4]

Man, if you're asking Gordon Gekko for stock advice, you're already fucking up.

 

[Pilgrimzero]

The man who gave America its motto

"Greed is good"

 

[Finaj]

Remember when Gordon Gecko became a father-in-law to Shia Labeouf?

 

[Ampersands]

One thing I've always wondered is whether stocks were once physical things. I imagine they would be big empty boxes that people redistributed every day.

 

[John Dunbar]

How dividends work, like if i had a single share of Disney they would still be required to send me a check?

Stock splits, how can you suddenly make more of a company?

And do hostile takeovers work like movies? Like if I was able to get 51% of Proctor and Gamble I would own it?

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yes, you get dividends for every stock if the company pays dividends.

when a split happens, the number of stocks double (or triple or quadruple etc.) but their value decreases the same way. so if you own 100 stocks worth 100 dollars each, after a split you might have 200 stocks worth 50 dollars each. you don't own any more of the company since the value stays the same.

and hostile takeovers are possible. many companies however have separate voting shares.

 

[Kirblar]

How dividends work, like if i had a single share of Disney they would still be required to send me a check?

Stock splits, how can you suddenly make more of a company?

And do hostile takeovers work like movies? Like if I was able to get 51% of Proctor and Gamble I would own it?

Click to shrink...

Yes, that's how dividends work. Amazon has only recently begun paying any dividends, they reinvested their profits and were running at near-0% on paper profit margin for a long time.

Stock splits are just dividing it into smaller pieces to make it more liquid If you are selling some off it can make it easier to do so. Berkshire Hathaway stock has had an extraordinarily high share price for eons and when they wanted to create a "public" option for smaller investors they created a new class of stock that didn't have voting rights - https://www.fool.com/investing/2017/02/14/when-will-berkshire-hathaway-split-its-stock-again.aspx

Basically yeah.

 

[ebs]

1. Yes you will get the dividend, otherwise you've been robbed because the stock value will decrease by the dividend amount when it gets paid.

2. You make more shares but the shares are worth less, such that the total market cap is unchanged. More shares at a cheaper price encourages more investment and trading activity.

3. Share ownership gives voting rights, of you have >50% of stock then you have the sole right to decide the companies board of directors which effectively gives you control

 

[excelsiorlef]

Stocks are a flavored liquid preparation. They form the basis of many dishes, particularly soups and sauces

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[Alwayscrazybacon]

The man who gave America its motto

"Greed is good"

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"Greed, for want of a better word, is good" in fact.

 

[Mugsy]

For stock splits, you are not creating more money/value. It is similar to splitting a single $100 bill into 100 $1 bills, no difference in value just in denominations. Everyone who owns the stock will get the exchange value of the new stock. They do this because a stock can become so high value it is hard to do business with it. If you only had $100 bills in your pocket then it would be very hard to do day-to-day business, splitting into equivalent smaller denominations would just make business easier.

 

[Etain]

millennials are like 30

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Gordon Gekko is the boneitis guy from Futurama right?

 

[Slayven]

For stock splits, you are not creating more money/value. It is similar to splitting a single $100 bill into 100 $1 bills, no difference in value just in denominations. Everyone who owns the stock will get the exchange value of the new stock. They do this because a stock can become so high value it is hard to do business with it. If you only had $100 bills in your pocket then it would be very hard to do day-to-day business, splitting into equivalent smaller denominations would just make business easier.

Click to shrink...

That is a good way of explaining

 

[Cantaim]

There are also different types of stock usually referred to as common stock and preferred stock. Common stocks are usually given dividends (either a cash dividend or a stock dividend. Yes you can choose to get more of a companies stock instead of cash if the company allows it) and voting rights. While Preferred stocks are typically more expensive but have the catch that they are guaranteed a fixed amount of dividends in a given year.

So lets say I have 10 people who own enough preferred stock that I need to give out 1 annual payments of cash too. Then I have 100 people who have common stock who I told I can give dividends too. Each preferred stock owner is guaranteed $1,000 each in cash for their dividends. So I set aside $10,000 bucks that $10,000 is guaranteed to go to the preferred stock holders no matter what. If I set aside $11,000 the $10,000 will go to the preferred and the left over money will be split among the common stock holders all at once.