![]() ![]() One of the best ways to raise shareholder morale is to pay dividends. If you do, you will drain the company out of capital which can kill the company and cause lawsuits.īut why would you need to change the dividend rate for your own company? If your company is publically traded, your shareholder morale may drop. You will need to be careful and not increase the dividend rate too high. This is the only way to extract capital from companies you own. If you want to make money from your subsidiaries, you'll use the dividend system. ![]() You can change the dividends of the company you manage and any company you have 50% or more ownership of. If you meet the criteria to issue shares, the “Issue More Shares” button (#1) will appear in the center of the panel.ĭividends are quarterly payouts to owners of your shares. The chance of a lawsuit decreases every year since the last Issue or IPO. There is a chance that issuing shares will cause a lawsuit. ![]() When can you issue shares? You can only issue more shares if you own 50% of the company, and it's been more than 6 years since you last issued shares or IPO'd. You still own 10 shares, but now that's only 5% of the company. If the company issued 100 more shares, the total number of shares is 200. To put it into numbers, let's say there are 100 shares of a company. Shareholders do not like it when you do this action. Remember, shares are fractional ownership of a company, so if you created more shares, that factional ownership per share would decrease. When you create new shares, the value of your current shares will go down. You can then sell those shares if you choose so. When you issue more shares, you create new shares. While you typically can only IPO once, you can occasionally issue shares more shares. Companies will buy other company shares or increase dividends when they are doing well. Companies will issue more shares when they need the money, or their stock is overpriced. Likewise, a company that is doing poorly will be more willing to be bought out. For example, it is difficult to acquire a company that is booming. Rarely will the market cap of a company drop below this value.Ĭompanies will also make financial decisions based on the health of their company. The game also gives a minimum market cap value to the stock based on the equity they own. External factors, such as market conditions, also play a role in the share price. Likewise, if revenues and/or EPS decrease, the share price will go down. When a company's revenues increase and EPS increases, the share prices will go up. And when the company is doing well, the price of a share will go up. When companies are doing poorly, the share price generally goes down. The price of a share change based on what people are willing to pay for it. ![]()
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