Quid Pro Grow: Dreams and Dollars

Tuesday, October 6, 2009

Dreams and Dollars

Sometimes dreams are bigger than the person trying to achieve the dream. There are two types of stocks: ownership and dividend. Both are useful in fulfilling dreams.

Wouldn't it be nice if large corporations listened to people? They do and these people have ownership stock. Ownership stock gives individuals a voice in corporate activities. Imagine living on a farm in a dead zone. It would be nice if service was available. File a complaint with a customer service representative or send a letter to the president of the company saying how the area is growing and it is in their interest to establish themselves before the competition. The customer service representative does not have the ability to do anything. The president might put it on list of things to think about.

Unlike political parties, which don't have shares and person earns a voice; a person buys the right to be heard in Business Land. Each share entitles shareholders a ticket to the big conference where they talk to people face-to-face. Each share owned moves the person's opinion higher in ranking. One share opens the door. Ten shares give a person a voice. Several shares make their voice important. They have proven they want the company to succeed; therefore, people living in a less populated area are prioritized.

In Business Land everything is about the bottom-line. The national language is money. Imagine a big movie production company like Miramax or a record company like Interscope. Why should they go out of their way to give opportunities to people in your town when they have so many applicants? Up the chances of them sending a talent scout to town by telling them there are many talented people personally.

Dividend shares fulfill the dream of having money. Money to buy a home, build a strip mall or save for retirement. Each share qualifies for a percentage of earnings off the total amount invested in their company. Since buying shares is a loan, it makes sense for companies to give an incentive. For example 5 shares at $30 dollars equal $150. The dividend pays 5% quarterly. The shareholder makes $7.50. In one year buy another dividend earning share to increase payout.

This may not sound like a big deal; however, imagine owning $300,000 in dividend shares. That is $15,000 quarterly. If a person invested $3,000,000 they would make $300,000 a year. This sounds absurd to most people, yet people make money on money all-of-the-time and it is easy to invest more money at anytime. It is completely feasible to save $100,000 by retirement and make an extra $20,000 a year. That is what a lot of people make in a year, while working.

Understanding these aspects is important when planning a future. Companies separate these types of stocks. A person buys one or the other. However, I have been given the option to vote for Board of Directors with dividend shares. Is power or money more important? Knowing what is out there greatly improves chances of getting what you want.

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