IDIOT'S GUIDE TO FED2

COMPANY MANAGEMENT FOR MANUFACTURERS

SHARE TRADING

You can increase your personal shareholding in the company by buying some of the shares held by the broker. The advantage of this is that you, personally, will get more money whenever you issue a dividend. You can also sell some of your shares back to the broker. Buying and selling shares may affect the share value, depending on how many you buy or sell at a time.

The commands to buy and sell your shares are 'BUY amount SHARES' and 'SELL amount SHARES' where 'amount' is the number of shares in each case. You can buy or sell up to 100 shares at a time, but you cannot own more than 2,000 or less than 500. The broker will charge a fee of 1%, with a minimum charge of 250 ig.

As well buying extra shares for your personal shareholding, the company can buy treasury stock - that is, it buys back some of the shares from the broker. The more shares the company itself owns, the less money actually leaves the company when you issue a dividend.

The commands are 'BUY amount TREASURY' and 'SELL amount TREASURY' and like personal shares, you can buy or sell up to 100 at a time, and the company cannot own more than 2,000. It can sell all of its stock, though.


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