If I own, let's say 10 shares of Google Stock, do I get a percentage of the quarter profits they make?
Thanks, if you could elaborate more too, I'd appreciate that.
2006-10-10 03:45:43 · 5 answers · asked by karl_rove_is_great 1 in Business & Finance ➔ Investing
there are two kinds of profit (or loss) from owning a stock.
one is if the stock increases in price, if you have held it a certain amount of time, you even get special tax treatment of your profit called capital gains. of course if the share price drops, you have losses.
the second way is if a company pays a dividend. Just because a company shows earnings in a given quarter does not mean they will declare a dividend. Many new companies (like Google) plow the profits into growing the company.
unfortunately, Some companies, like COX cable, use the profits to buy back their shares, which some people (or at least me) think is stealing from the shareholders. The reason this is done is to increase the wealth of managers, who own stock OPTIONS, and benefit only from future stock prices, not from dividends.
2006-10-10 04:21:28 · answer #1 · answered by disco legend zeke 4 · 0⤊ 0⤋
You will only make a profit by selling at higher than purchased. If you paid 10 dollars for each share and sold at 15 you would make a total of $5 per share or $50 total for the 10 shares.
If you what to earn quarterly profits, purchase a stock or mutual fund that pays a dividend.
From my limited knowledge stocks that pay a dividend do not fluctuate as much in price, but will pay a steady return from the dividend. Stocks that do not pay a dividend may fluctuate more and you can take advantage of buy low sell high.
2006-10-10 10:59:58 · answer #2 · answered by mark m 1 · 0⤊ 0⤋
NO. You will only get a share of the profits that are declared as a dividend. In Google's case that is not likely for a long time time. A more complicated answer is that you will indirectly benefit from their profits even if they don't pay a dividend. That comes from an increase in the market value of the shares you hold.
2006-10-10 11:05:56 · answer #3 · answered by etilyad 2 · 0⤊ 0⤋
No. You get what the market thinks that profit makes the stock worth on any given day as appreciation - not cash. If a company pays a dividend you get cash but that is not tied directly to profit. Believe in/research markets, not fantasies.
2006-10-10 12:26:29 · answer #4 · answered by vegas_iwish 5 · 0⤊ 0⤋
only if they declare a dividend and youare the owner of the stock on the date of declaration. It is called X date.
2006-10-10 11:03:40 · answer #5 · answered by golferwhoworks 7 · 0⤊ 0⤋