Thursday, February 4, 2010

Before you invest a penny....

I STRONGLY urge you business and finance students to take Finance 315; it is a real eye-opener. So I just discovered something this week that I'll admit that I've been a bit ignorant about: stock dividends are NOT a way for a company to increase earnings. They are a way for a company to recapitalize and have no bearing on the assets or liabilities of the firm. Many investors, when they first start out, erroneously believe that stock dividends are a way for a company to increase earnings. The only instance in which this would be even partially true would be if it were a cash dividend. I'm still learning the workings of the stock I own in certain companies; thank goodness there's a course like this one to guide me in my understanding.

As regards my internship, we are all looking at strengths and potential opportunities and/or threats to the organizations we're interning for (in my case, it's my current employer). When I think about it, this is what employers ask for all the time: input from us about how we feel the organization or firm is doing and where we need to improve, if at all. So this is good training for when you enter the work force. Of course, being a part of the work force, it really reinforces what I've learned in the past. Companies look for creative, self-motivated individuals who can come up with good ideas to strengthen the company and help it to grow even more.

No comments: