Hello,
I am brand new to this game. I have quite a bit of capital left over and would like to spend a little bit of it in the market so my money can work for me. The only issue is… I cannot figure out how to buy anything, can someone explain it to me. Thanks so much.
Landser
Landser Airlines
London Gatwick
unless you have hundreds of million left in the bank account, it is not worth getting into stock buying, you are better off leasing new aircraft and generating new revenue through passengers and cargo.
1) Stock market does not have a market maker. This means, that to buy or sell stock, somebody else must be willing to buy/sell. You may get lucky to buy some stock, but may not be lucky enough to dispose of that stock when you need the capital. This means, stock market in Airlinesim is pretty illiquid, because there is no market maker.
2) Your only way to get money off the stock market is through dividends and capital gains. You can realize capital gains only if somebody else wants to buy stock, see above.
As far as dividend, each enterprise posts 15% of its profit as dividend to shareholders. The price of stock does not depend on profit of the company (only indirectly) but rather on its total net assets (equity). This means that for as long as the airline is not losing money, the stock price will keep rising and rising, while the dividend may get smaller and smaller. At some point of time, you may get a dividend that is very miniscule
Look at an example below.
The stock price is 206,652 AS$ and a dividend per share is 180 AS$
It would take you 22 real life years to get the money back.
Now you can see that your money is better spend growing your company, than investing in stock.
