Econ stock

Econ stock
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  • HUGHES COMPANY BIKE SHOP 
  • Business has really picked up lately, I need to go to the bank and get a loan to expand my business 
  • Your account is on the display
  • That's not enough money to expand. It looks like I'll need to get some help.
  • Your savings: $5000
  •  Jane finds 9 people to invest in her company. Each investor gets a share, each share being 10% ownership of the company.
  • Shareholders elect a board of directors, who make all the decisions for the company. They elect Jane as president. Shareholders also receive a portion of the company's profit as dividends.
  • The board of directors wish to buy a skateboard company to expand their business. In order to pay for it, they release more stock as preferred stock.
  • On the issue of buying the skateboard company, all in favor say I, all apposed say Nay
  • Common Stock Price: $10 Preferred Stock Price: $15
  • I
  • Common Stock
  • Has a vote in the company decisions per share. Gets dividends after preferred stockholders
  • Preferred Stock
  • Gets dividends before common shareholders Doesn't have a vote in company decisions.
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