The Birth of a Stock - Part 2

The Birth of a Stock - Part 2

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  • After a successful first year, Hughes Bicycle Company is looking to widen its horizon. It's not long before an opportunity presents itself.
  • Fred's Skateboards
  • If we bought Fred's Skateboards, we would have a whole second production line and product, which will in turn help us grow even more!
  • Hughes Bicycle Company Weekly Board Meeting -Current Profits Chart -Meeting higher quality standards -Improving morale in the workplace -Salary raises -Fred's Skateboards -Other stuff -Fire whoever thought "other stuff" was a proper topic for discussion at an official board meeting
  • We could sell preferred stock to raise money in order to buy Fred's Skateboards, or we could give preferred stock to the owners.
  • Common Stock
  • -Receives dividends as normal -Can vote for members of board of directors
  • Let's do it!
  • Preferred stock receives dividends before common stock, but cannot vote for members of the board of directors.
  • -Receives dividends before common stock -Cannot vote for members of board of directors
  • Preferred Stock
  • A few days later...
  • Good evening, young sir. Would you like to buy a share of the Hughes Company? From what I've heard, it's been doing fairly well as of late. $10,000 if you want it.
  • Definitely, yes. I've been looking for one ever since they opened up that bicycle plant here a year ago. I still remember that day like it was yesterday.
  • Once that is done, we can finally bring our company's stock to the rest of the country. We would also get some nice publicity.
  • After another successful year...
  • Hughes Bicycle Company Weekly Board Meeting -Current Profits Chart -Stock Values -International Competition   *Bob's Beautiful Bikes -Joining the NYSE -Discuss possible redesign of this room -Etc. -Discuss why Mr. Informal Words hasn't been fired yet
  • The NYSE has specific requirements for companies to meet, such as a yearly fee, and we need an exchange specialist.
  • Although they only appear to be talking about the company's beginnings, they have their eyes on the bright future ahead of them, one including world domination. Together, of course, as one does not simply conquer the world alone. It always takes two, for if one could do it, it would already be done.
  • I've got to say, this business has done so much better than I expected. I just want to thank you for supporting me along the way. I couldn't have done this without your help.
  • I'm the town mayor and have been for four years now. This town was in need of a bicycle plant for a long time, and it needed a way to appear on the map. Thanks to your company, people everywhere know of this town. I should be thanking you, even if I did help set you up.
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