173
votes
Accepted
Found old paper shares of Motorola Inc that has since been broken up
In order to determine what has happened to Motorola, you need to look at any corporate actions that have occurred on the stock.
CORPORATE ACTIONS
Motorola Inc had the following corporate actions ...
- 3,829
133
votes
50k job is offering 90k worth of shares. Scam?
That would likely be a startup.
So they need a developer who can ask for a good salary, but they don't have that much money. So instead they offer shares.
If the company is successful, due (in part)...
- 22.4k
132
votes
Found more old paper shares from broken up companies
Let's have a look at the various corporate actions for these companies to see what events would affect your shareholding.
EMC Corporate Actions
Feb 2001: 0.0369:1 Spinoff of McData. Cash paid for ...
- 3,829
126
votes
Why is stock dilution legal?
Theoretically, when a company issues more shares, it does not affect the value of your shares. The reason is that when a company issues and sells more shares, the proceeds from the sale of those ...
- 115k
92
votes
Selling property inheritance share to sibling, 25 years later: original value? current value? something else?
Shared property is tricky when agreements aren't made up front, but the right answer in a situation like this is basically whatever you agree to. That said, you own 5% of the property, not 5% of what ...
- 69.1k
91
votes
Accepted
What is the difference between shares, stock and stakes?
Shares are the individual units of ownership of a company. The total number of shares of a company is somewhat arbitrary and can be changed by splits. A company worth $1 billion might be divided into ...
- 29.4k
84
votes
Buying shares when the price goes down 2% and selling shares when it goes up 2%
Last summer (2019) I actually tried modelling something like this approach using FTSE 100 date from October 1997 to July 20191, because I, too, felt "intuitively" it might work...
...unfortunately, ...
- 9,105
75
votes
Accepted
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
The unspoken point behind your question is that people often talk about the value of companies in terms of their market capitalisation which is the price of one share times the number of shares. This ...
- 27.9k
72
votes
How can a stock trade for a fraction of a cent?
Sometimes, we own things that are all but worthless.
What do you do if you have a single staple you want to get rid of? Nobody would give you even a penny for it. Even if it's unbent, a single ...
- 6,244
69
votes
Does cashing a 3% share harm the company itself?
You're selling the shares to someone else (in exchange for cash), not exchanging the shares for company cash.
Thus, the only way this could harm the company is by selling to someone who wants to take ...
- 50.6k
65
votes
Accepted
"Marked down as someone wanting to sell shares." What does that mean?
Private companies don't have liquid secondary markets. There are no identified buyers of your shares. The next time there's a fund raising round at the company they will include some or all of your ...
- 48.9k
64
votes
Buying shares when the price goes down 2% and selling shares when it goes up 2%
What is the problem, if any, of selling when it goes up 2% and then buying back in when it goes down 2%?
The problem is when the market goes up 10% and you cashed out at 2% because you thought it was ...
- 1,369
61
votes
Accepted
Why is stock dilution legal?
Here's another way that I look at it:
Say you and me were 50-50 partners in a small business. Suppose we wanted to expand our business but that needed money. Someone (let's call him Warren) has the ...
- 782
60
votes
Greedy shareholder that does not want to dilute his portion
What can be done? Buy that person out or find a different method of financing the company.
You're not going to get very far calling that person greedy and framing the entire issue around that. ...
- 48.9k
55
votes
Accepted
Why is it rational to pay out a dividend?
The main reason, as far as I can see, is that the dividends are payments with which the shareholders may do what they want.
Capital that the company has no use for does not make a significant ...
- 1,397
54
votes
CEO entitlement from share ownership?
In its basic form, a corporation is a type of 'privileged democracy'.
Instead of every citizen having a vote, votes are allocated on the basis of share ownership. In the most basic form, each share ...
- 41.7k
54
votes
Accepted
Ram Solutions Group, genuine or scammer?
Things to look for:
They contacted you first. You always have to ask yourself how they came by your contact. If they have a really good product, they would not have to SPAM to sell it. Clarification, ...
- 5,316
52
votes
Did an additional $32 billion necessarily get invested into Amazon.com stock on October 26th, 2017?
No, a jump in market capitalization does not equal the amount that has been invested.
Market cap is simply the stock price times the total number of shares. This represents a theoretical value of ...
- 115k
51
votes
Borrowing money to buy shares for cashflow?
Buying individual/small basket of high dividend shares is exposing you to 50%+ and very fast potential downswings in capital/margin calls. There is no free lunch in returns in this respect: nothing ...
- 5,768
46
votes
Why is it rational to pay out a dividend?
First, you need to understand that not every investor's goals are the same. Some investors are investing for income. They want to invest in a profitable company and use the profit from the company as ...
- 115k
45
votes
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
The term "billionaire" is not a legal or technical term; it can mean whatever you want it to mean. Most people would define it as someone who owns at least $1 billion in assets.
If you own ...
- 115k
41
votes
Does cashing a 3% share harm the company itself?
It depends on how the shares are sold.
Let's say the share price right now is $10, exactly. Shares sold for $10.01 do not sell and shares sold at $9.99 are a loss to the seller.
Chances are you won'...
- 525
41
votes
Selling property inheritance share to sibling, 25 years later: original value? current value? something else?
Technically it is worth what you are willing to sell it for and what he is willing to buy it for. Failing that, it is worth the current market value. If you were going to buy a home, and the you ...
- 76.1k
41
votes
Accepted
Why doesn't share movement match difference between open and close?
The previous day, the stock closed at $250.22. While it opened lower in the morning, that drop was erased and the stock closed at $251.60, a gain of $1.38 over the previous day's close.
Stock changes ...
- 6,244
38
votes
Accepted
Why do shareholders participate in shorting stocks?
In short (pun intended), the shareholder lending the shares does not believe that the shares will fall, even though the potential investor does. The shareholder believes that the shares will rise. ...
- 41.7k
38
votes
Accepted
How close is the fate of Berkshire Hathaway tied to Warren Buffett?
No one can tell what will or will not be a good investment in the future. However --
Berkshire Hathaway's annual newsletter to shareholders has, for the past several years, discussed this. Warren ...
- 1,098
38
votes
Accepted
Can a company with a very large valuation still be held privately?
Is this scenario practically possible?
Absolutely - there is no legal requirement in the US to become publicly traded.
Are there any examples?
The top 25 private US companies all have annual ...
- 130k
36
votes
Greedy shareholder that does not want to dilute his portion
A no dilution privilege is precisely that, a privilege and not a duty. There is no reason to believe the shareholder is being greedy, after all, they are adding risk to their own position at the same ...
- 4,267
35
votes
If one owns 75% of company shares, does that mean that he would have to take upon himself 75% of the company's expenses?
A firm is a separate legal person from its shareholders or owners (but doesn't get invited to parties much). Owners invest capital to get shares in the firm or may get shares for investing time, ...
- 8,801
35
votes
When a journalist writes "shareholders wiped out" what does this actually mean?
It means that the company is effectively bankrupt, so its existing shares are now worthless. The restructuring will cancel those shares and create new ones that belong to the company’s debtors rather ...
- 22.9k
Only top scored, non community-wiki answers of a minimum length are eligible