Sometimes folks ask why anybody cares about her/his own share price. Out of all the things you can use to measure your performance on Empire Avenue, I think that share price is one that you have least control over. I know if you do certain things, your net wealth will rise. I have a pretty good understanding of how to raise the dividends that you pay. I can even be reasonably intentional about increasing daily income. Share price seems far more dependent on other folks than any of those other things. In a later post, I will discuss a few strategies for increasing your share price, but today I want to consider why you might care about your share price.
For new players, the opportunity to run missions seems to be a driving force. When your share price reaches 30(e), you can run a mission. When your price reaches 50(e), you can run 2 missions concurrently. You can run 3 concurrently when your price gets to 75(e). When your price reaches 100(e), you can run up to 10 missions at the same time.
You get a percentage of the sale when your shares sell; so a higher price gets you more income. That percentage slides from 50% to 10% as you have more total shares sold. Still if your price is 1,000(e); then 100(e) per share sold is an amount that you can feel.
The most realistic and important reason for wanting a higher share price is to increase the net wealth of your shareholders. As your share price rises, everyone who owns you will see a rise in their net/portfolio wealth.
Another positive benefit is that a rising share price causes your share price to rise. This might sound like circular logic…think about it this way. People sell stocks with falling share price causing that share price to fall more. The momentum of increasing value causes folks to buy more increasing your share price even more. (OK crummy explanation…but you get it right?)
The biggest reason for wanting an increased share price is…scoreboard. I am not sure that it is right, useful, or the best; but folks judge performance on the Avenue by share price. I remember a few months ago when someone first complained that I was expensive. I felt that so often during my time of trying to buy back my investors. Today…finally…I don’t have to buy back anyone who is really expensive. I am already maxed in them all….and besides now it just doesn’t seem like Kevin or Art are really that expensive anymore!