Disney Stock - whatcha get?

[New2WDW]

I was curious about Disney Stock and I know nothing about stocks, the market, etc. But I had some questions and any additional info would be great!

1) Does anyone have Disney stock?
2) What do you get with this/what do you own?
3) Cost of one stock? (is it around $30.00)
4) What can you lose by having stock?

:veryconfu Thanks for any info!

 

[lebeau]

I was curious about Disney Stock and I know nothing about stocks, the market, etc. But I had some questions and any additional info would be great!

1) Does anyone have Disney stock?
2) What do you get with this/what do you own?
3) Cost of one stock? (is it around $30.00)
4) What can you lose by having stock?

:veryconfu Thanks for any info!

I'm a financial adviser so I can answer some of your questions:

3) Current value of Disney stock (as of this posting) $26.97. Depending how/where you buy it, you'll likely have to pay some kind of commission.

4) You cannot lose more than you invested. So theoretically (if Disney were ever to go bankrupt) you could lose the entire value of your investment.

 

[geubux]

1) I don't personally own Disney Stock
2) You own 1 share of the Disney Company, symbol DIS on a market search engine.
3) The Cost changes over the course of a day. As of now, about $26-27.
4) If they declared bankruptcy, you would be out the cost of a share or however many shares you own.

Most stock dealers will not sell you only one share. However, there are several sites where you can purchase one share of Disney stock at a time. Used to be that you would get a paper certificate for each share and ownership entitled you to the annual report. don't know if that is still the case.

 

[tigsmom]

I'm a financial adviser so I can answer some of your questions:

3) Current value of Disney stock (as of this posting) $26.97. Depending how/where you buy it, you'll likely have to pay some kind of commission.

4) You cannot lose more than you invested. So theoretically (if Disney were ever to go bankrupt) you could lose the entire value of your investment.

And never invest more than you can afford to lose. I have owned my Disney stock for years and the value has fallen quite a bit. I do not own it to make money- it is a sentimental stock (a no no I'm told) and just a small part of my portfolio.

The only thing you get from owning Disney stock is the opportunity to attend the annual meeting & voting privilages. You also get the dividends (no huge $$ there). You will not get any freebies or discounts.

 

[DanStat]

Stock

I was curious about Disney Stock and I know nothing about stocks, the market, etc. But I had some questions and any additional info would be great!

1) Does anyone have Disney stock?
2) What do you get with this/what do you own?
3) Cost of one stock? (is it around $30.00)
4) What can you lose by having stock?

:veryconfu Thanks for any info!

1.) Yes. I have one share. My dad has a few. His is for retirement (don't ask why), mine is for entertainment value.

2.) Mine came with a framed certificate with some "Disney landmarks" on it. You get the annual report. You're supposed to have access to a Shareholder website - I am never able to access it.

3.) I think mine was like $68 - quite a while ago.

4.) Don't buy stock on margin. But, now would be a good time to buy...there was a good article on MSN about Disney's prospects this morning. "Desperate Housewives", "Lost", the 50th celebration and some other things were mentioned. I'm not sure though -- if you're really serious, wait and see what happens in September when Eisner takes his exit.

 

[New2WDW]

Good Info!

I did read the article this morning on MSN and that is the reason for the questions. If I do buy the stock now at $26-27 and it does go back up to the $60-$70 etc. then when and if you sold it you make the profit? It just seems like a good time to buy and if all I lose is the amount I put in then that seems like a good gamble as well.

"Tigsmom" - Can you clarify what Dividends are?

"lebeau" - if I were to get into purchasing/trading do I need to get an advisor or since I know what I want to get into do I need someone to do the trading/purchasing for me? Or can I use this Ameritrade stuff on the net?

One other question: How does this effect tax time - I have to pay taxes on earnings? Is that all?

 

[New2WDW]

???

Don't buy stock on margin.

What do you mean by this???

So, you have Disney stock that you purchased at $60+ and now the stock has dropped, are you losing money year to year or would you only lose money if you sold your stock at this time (since it is down)?

 

[DanStat]

What do you mean by this???

So, you have Disney stock that you purchased at $60+ and now the stock has dropped, are you losing money year to year or would you only lose money if you sold your stock at this time (since it is down)?

Buying stock on margin refers to what people did in the months leading to the Stock Market Crash. haha People were buying enormous amounts of stock that they couldn't really afford. When it crashed, they lost everything.

Dividends are what the company pays to you at the end of the year. My dividend for 2004 was $0.25 for one share. Needless to say, I haven't exactly cashed that check yet.

 

[New2WDW]

$0.25

Really! So do you have to pay taxes on that Dividend?:lol: Thanks for the info. I was thinking about buying one for my girls and my wife and I. But I wanted to make sure I did not lose too much or have any hidden costs, etc.

 

[DanStat]

Really! So do you have to pay taxes on that Dividend?:lol: Thanks for the info. I was thinking about buying one for my girls and my wife and I. But I wanted to make sure I did not lose too much or have any hidden costs, etc.

You may want to look into buying one of the certificates from a company. I think Steve has an ad for them on WDWMagic.com's main page. It might be a little more easier to manage.

 

[tigsmom]

I did read the article this morning on MSN and that is the reason for the questions. If I do buy the stock now at $26-27 and it does go back up to the $60-$70 etc. then when and if you sold it you make the profit? It just seems like a good time to buy and if all I lose is the amount I put in then that seems like a good gamble as well.

"Tigsmom" - Can you clarify what Dividends are?

"lebeau" - if I were to get into purchasing/trading do I need to get an advisor or since I know what I want to get into do I need someone to do the trading/purchasing for me? Or can I use this Ameritrade stuff on the net?

One other question: How does this effect tax time - I have to pay taxes on earnings? Is that all?

Dividends are what the company issues (usually once a year I believe) as a "reward" for owning their stocks. You get so much money per share of stck you hold. Off hand I can't remember what this years was as I have opted to not receive a check but have my dividends re invested.
Yes you have to pay taxes on your earnings and also when you sell (if you made a profit).

Personally (and please note that this is my opinion and not meant to critisize anyone) I would avoid the One Share people. You pay over inflated prices for a framed certificate. You can request your certificate & frame it yourself. Remember that certificate can be cashed in by anyone who presents it. Some companies hold my certificates, others I hold and have locked away for saftey.

My DH & I use Ameritrade for our investing as you do not need to invest huge sums as some companies want you to do, they charge a very small fee/transaction and an internet account is very easy to set up.
When you buy at a low price and sell at a higher one, you do indeed make a profit, but it can always fall lower. Be very careful, never invest more than you can afford to lose and don't forget to check your stocks every once in awhile. My daughter lost out on a good opportunity to sell and make a decent profit because she failed to check on things.

 

[DanStat]

My DH & I use Ameritrade for our investing as you do not need to invest huge sums as some companies want you to do, they charge a very small fee/transaction and an internet account is very easy to set up.
When you buy at a low price and sell at a higher one, you do indeed make a profit, but it can always fall lower. Be very careful, never invest more than you can afford to lose and don't forget to check your stocks every once in awhile. My daughter lost out on a good opportunity to sell and make a decent profit because she failed to check on things.

I agree with you about Ameritrade. If you plan to do this a lot, use Ameritrade.

 

[lebeau]

Lots of good advice. Be sensible. Don't invest more than you can afford to lose. Buy from someone with a good reputation. I'd also encourage you to decide on a goal for your investment in Disney. Is it a fun lark? Is it a serious investment intended for retirement or some other long term goal? That's going to guide who you buy from and what form your account should take.

As far as taxes, that depends on the account. Assuming you're talking about a brokerage account, you're going to be taxed on any capital gains you would make at the time you sell the shares and you'd be taxed on any dividends you receive as well. An income tax planner can best advise you on all the intricasies of capital gains and losses, etc. If you're in a tax deferred retirment account, then the taxes are treated differently.

One other warning: stock is risky. Buying only one stock instead of a diversified portfolio (or mutual fund) is riskier still. You can have big swings depending what's going on in the market. A good investor has to be prepared to ride out market cycles to reap the benefits of long term growth. As far as Disney stock, it may one day reach that $60 range again. But I wouldn't expect to see that for a long, long time.

Just some free common sense kind of advice. Take it as you would any other complete stranger's opinions

Oh and buy low and sell high - can't go wrong with that.

 

[New2WDW]

Oh and buy low and sell high - can't go wrong with that.

Good Advice! Thanks everyone on the quick lesson of stocks! I think I would definitely be getting in over my head for now! Thanks again! I will proceed with caution....:lookaroun

 

[wedway71]

i have one share

my wife bought me one share for x-mas couple years back.it wasnt for the idea of making money but couple of things to think about.....
1-you can officially go and be admited to disney shareholder meetings.
2-even though i only get like 25 cents for dividend pay out its sooo kool to get stuff in the mail that states your a disney shareholder.
3- and most important next time your in a disney park and someone asks"hey buddy,do u think u own the place?" -you can answer "actually,yes i do"

 

[Woody13]

Being a Disney shareholder has brought me closer to and helped me develop a meaningful relationship with Roy Disney and Stanley Gold. :lookaroun