Mrs. Stock and her husband, Mr. Stock, each represent a small piece of a corporation. We visited their home and asked them to help us understand what they do a little better.
Why do investors like you so much?
Mr. Stock: Easy brother! When you own company stock like us (in other words, when you’re a shareholder), you own of a piece of that business. That means you get to claim a portion of their earnings.
Mrs. Stock: Let me give you an example. If a company issues 5,000 shares to stockholders, and you own 500 of those, that means you get to claim 10% of the company’s earnings.
Mrs. Stock, what’s something people don’t know about your family?
Unfortunately, people often don’t know that once every quarter, large and stable companies distribute dividends to their shareholders. Those dividends can be a significant part of your earnings. You can add that to the list of reasons why you should like stocks…
Mr. Stock, what’s the key to your success?
Time is key, like with any investment. When the company you invested in is successful, the value of your stocks will likely increase over time. That’s why you need to start sooner rather than later, and be patient.
Mr. Stock: We’re Wall Street’s hottest couple. But I bet you probably knew that, unless you’re living under a rock…
Mrs. Stock: Oh sweetheart, be nice. It is true though. Just turn on the news and you’ll hear people talking about us all day. They love us!