Skip to main content

What is a Stock?

Ok so I realize you all want me to give you that one big stock tip that is going to make you rich, fast and have you living on easy street, I would have said on Carribean Island, but St. Croix not looking pretty at the moment. (Hurricane Maria).  Anyways lets get to it:

What is a Stock?

A stock is the the percentage of ownership you have in a company, if you own part of a company then you have taken stock in it.  Cattle are stock, Sheep are stock and Chickens are stock if you have a farm then you take stock in the fact that these commodities will bare you fruit.

So we are going to start a scenario with 5 people, because I love my friends I will use their names.

Ana Lisa

Those didn't make it well respond more often on my Facebook Page, anyways:

These 5 people are forming a company to make widgets (classic term for item in business school).

They each invest $200.00 for 1 share of stock in the new company, each "Shareholder" owns 1/5th of the Company.

So they place $250 aside to run business (staff office etc.)  and $750 to make widgets.  The year passes, they make $11,000 off the widgets.

The company made a profit  ($11,000 - $1,000) = $10,000 there were 5 "Shareholders each having 1 share of stock.  So divide by 5 each Shareholder now owns 1 share of stock that is worth $2,000  not bad on an initial $200 investment.

So next year, they spend $2,500 aside for business expenses (new staff etc) and spend &7,500 to make widgets.  The following year they have a profit of $110,000 -$10,000 = $100,000 Each person now has 1 share of stock worth = $200,000

See how it works?


Popular posts from this blog

Custom Made Masks ~ by Sound Box Graphics ~ Print your own design

During this Pandemic we need to help local businesses and support local artists, around the world. I am proud to advertise for friends of mine to help their businesses. You can trust an advertiser on because I know them or have an association to them.  Williamswallstreet is free and will always remain free to my readers. Williamswallstreet is supported through donations like yours to the PayPal below. WilliamsWallStreet does not collect money from its advertisers and all proceeds go directly to the small business. Thank You my readers make it a joy to continue writing this blog. Author William Staab Winner of Wall Street Journal Dartboard Contest March 2009 Guided Tours Around Norway Tailor made to your interests! Tom K Bjore Facebook:                                                   @ExploreMyNorway  @Explore MyOslo                                    Intstagram: @explore_mynorway   @exploremyoslo Check out this website for some great

Portfolio Check In Lets See How We Are Doing?

 Well I apologize, it has been awhile since I have written an article and checked in with the portfolio but I have been watching our stocks and must say we have been doing quite well!  The overall portfolio has increased by 25%.  Lets do a run down of where we were at last time on May 10, 2020 and the two stocks we added to the portfolio since then AYRO on 6/17/2020 and ORBN on 8/8/2020. Stock                                                  5/10/2020                     2/23/2021 Alibaba   (BABA)                                                         201.74                           250.45 Alison Engines (ALSN)                                                 37.45                             38.15    Amazon (AMZN)                                                      2380.50                        3,145.91 Ayro (AYRO)                                                                  2.69                               6.59 Evo Transportation (EVOA)                                       

Happy 3rd Anniversary William's Wall Street .Com! ~ Mock Portfolio at 86.7% Return on Investment For The Year!

  So here we are again another year completed for and what a year it has been the Dow Jones at $29,000 at the beginning of the year and taking a huge loss due to the Covid 19 Pandemic dropping as low as to 19,000 and some change. We rode through the market ups and downs and by maintaining a level head were able to see a 86.7% return on our investment. While some of the stocks like Alison Engines, Norwegian Cruise Lines and Washington Real Estate Investment Trust have suffered. The stellar players like Nividia, Amazon and Tesla have really made this portfolio shine. William we have to admit you are doing a great job. Thank you Nancy Haloprin from Charlotte, North Carolina. Let's take a look at our Mock Portfolio: Stock                                              12/31/2019                              8/21/2020 Alibaba (BABA)                         $212.25                            $266.58 Alison Engines (ALSN)                   $48.32