Is there a financial benefit of any kind after you purchased stocks of another company?
as a shareholder you will get dividends per stock
Hi,
the dividend is 15% of the profit.
If you invest 1 million in the leasing deposit of a plane, at the end of the week you get all the profit that plane made.
If you invest 1 million in an airline that goes public, that airline uses your money to lease a plane, and it pays you 15% of the profit it makes.
Unless you are a very bad airline manager, you will earn more money if you use that million in your own airline…
Mind you, you can make another profit when you sell the shares. In the game, shares do not follow the rules of demand and offer. The value of shares goes up (or down) with the value of the airline. So you could buy shares for 100$ and sell them for 300$ a few months later. But then again, if you start your own airline with 10 million, your airline will also be worth 30 million a few months later.
Jan
I second Jan, your rate of return will be a lot higher if you invest into your own airline.
I only found it useful for getting some additional statistics about competing airlines. And when I had spare cash and no slots at DXB to add more flights.
Investing makes sense if you have a holding with cash left over. The best bet IMHO is to buy into IPOs - in any case the stock market is pretty moribund in this game, as far as I can see, as the rules tie the value of the shares to the value of the airline, meaning that there is no real market with price governed by supply and demand.
Don´t forget, you might be able to sell the shares you bought for cheap on a much higher price!
It’s not that easy to say that you’re an idiot when you’re investing in other companies. On Stapleton my airline is holding shares worth about 1.5 bn AS$. There are different economic factors which can make a stock investment favorable. To trade on the stock market is important for my strategy.