Home
>
Stocks & Mutual Fund
>
Investing in Stocks and The Game of Monopoly

Investing in Stocks and The Game of Monopoly

To begin, you might look at playing the stock market as though you were playing a game of Monopoly. That's right; for playing the stock market 'game' is not unlike playing a game of Monopoly. There are definite comparisons and parallels.

In Monopoly there are a Boardwalk, a Marvin Gardens, Utilities, Railroads, etc. In the stock market you have the same type of properties (stocks), as in the game of Monopoly. For example, a Boardwalk may be a GE; a railroad, a CSX Corp.; Duke Energy, a utility. The rent a player collects in Monopoly could be compared to the dividends collected by a shareholder in the stock market. How much rent collected in Monopoly would depend on the property owned and how many houses are owned on the property. In the stock market game this would translate into which company is owned and how many shares of each company is owned.

To win the game of Monopoly a player will need to own properties (three of the same color) before building houses and, eventually, a hotel to attain that comfortable, worry-free income that the player knows will come. (The game is not won by selling the properties you own to your opponent, even at twice the price paid.) The game is won by building houses on the properties owned and collecting that worry-free rent.

Taking this approach in the stock market game, you would not win in the stock market by selling your shares owned, but by adding to those shares owned, so every "rent" (dividend collected) would be higher than the previous "rent" collected. This would be accomplished by holding on to those shares owned, and by having the dividends of each company owned rolled back into more shares each quarter. (This would be compared to building houses on the properties you own in the game of Monopoly.)

In Monopoly three properties of the same color could translate in the stock market game as having three properties (owning three different companies) that pay their dividends, one in January, the 2nd in February, and the 3rd in March. This would give the player in the stock market game a dividend every month of the year. To aid in the worry-free "rent" collected, the companies owned would have a history of raising their "rent" (dividend) every year. Owning one house on a property in the game of Monopoly could be compared to owning one hundred shares of stock in the stock market 'game'. A hotel would translate into 500 shares of a company's stock.

There are opponents in the stock market game, just as there are in the game of Monopoly. An opponent in the game of Monopoly is anything that takes money away from you (remember those fees you sometimes had to pay from those pesky Community Chest cards?). In the stock market game the opponents are also anything that takes money away from you ? taxes, credit card payments, commission-fees, fast cars, booze, etc.

To eliminate any of these opponents in the stock market game will aid the investor in accumulating more shares for even higher dividend collecting "rents". All dividends on qualifying dividend-paying stocks are now 85% tax free, eliminating one tax opponent in the stock market game. And, did you know you could eliminate another opponent ? those pesky stock commission fees to stockbrokers? All stocks purchased can be purchased commission-free, without the need of a stockbroker.

How much money do you need to begin a stock market investment game, played like the game of Monopoly?

As little as 100 dollars can be invested commission-free into a company to start collecting those ever-increasing cash dividends.

You have permission to this article either electronically or in print as long as the author bylines are included, with a live link, and the article is not changed in any way (typos excluded). Please provide a courtesy e-mail to charles@thestockopolyplan.com telling where the article was published. (Word Count 679)

For more excerpts from the book 'The Stockopoly Plan- Investing for Retirement' visit: http://www.thestockopolyplan.com

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book 'The Stockopoly Plan'; published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/comfiles/pages/charlesmomelia.shtml

green cleaning service Park Ridge ..

In The News:

Reclaim your time from big tech with effective screen time reduction strategies for iPhone and Android, featuring steps to limit app usage and create phone-free zones.

Amazon Prime Day shoppers face threats from 120,000-plus scam websites as cybercriminals prepare phishing traps and malware ahead of the July sales event.

Fox News' AI Newsletter brings you the latest on this rapidly evolving technology.

The AEON humanoid robot tackles labor challenges with Nvidia AI, Microsoft Azure cloud and advanced spatial awareness, working alongside industry leaders Schaeffler and Pilatus.

Google's Ask Photos feature brings AI-powered searches to your photo library, letting you find memories with natural language queries while maintaining privacy controls.

The return of blue book exams emerges as universities fight widespread AI academic dishonesty and educators debate whether to ban AI tools or teach responsible usage.

Signs your phone might be hacked include strange behavior, unauthorized texts, battery drain and pop-ups, while protection involves updating software and avoiding public Wi-Fi.

Tokyo startup H2L has launched Capsule Interface technology enabling full-body robot control with muscle sensors, offering immersive remote operation.

The A.I. industry seems set for growing pains as Big Tech companies scramble for solutions to the medium's unprecedented strain on the power grid.

Fourth of July fireworks cause a 60% spike in lost pets, but GPS trackers and AI photo-matching services like Love Lost can help reunite missing dogs with their families.

Protect yourself from jugging, the rising crime by which thieves monitor ATM users and follow them to steal cash, with six practical safety tips to stay alert and secure.

U.S. airlines like Delta, American and United are selling your domestic flight records to government agencies through the little-known Travel Intelligence Program.

Autonomous robots from Uber Eats are rolling out across U.S. cities, featuring LIDAR sensors, secure compartments and all-weather operation for food and grocery delivery.

Costco has expanded into EV infrastructure with new ultra-fast charging stations that can charge most electric vehicles to 80% in 20-60 minutes while shoppers browse the warehouse.

The new Gemini Robotics On-Device AI allows robots to perform complex tasks without internet, offering enhanced privacy, reliability and adaptability for real-world use.

Protect yourself from Amazon phishing scams by spotting red flags like suspicious sender addresses and spelling errors while using Amazon's Message Center to verify communications.

GAC Group's new Govy AirCab flying car combines lightweight design with advanced safety systems and smart cabin technology to revolutionize city travel with an 18.6-mile range.

The Berkeley Humanoid Light (BHL) is a lightweight, open source humanoid robot that anyone can build using 3D-printed parts and off-the-shelf components.

Meta’s new AI chatbot is getting personal, and it might be sharing more than you realize.

A new threat targets both Android and iPhone users: SparkKitty, a powerful mobile malware strain that scans private photos to steal cryptocurrency recovery phrases and other sensitive data.

Thanks to a team at the University of California, Davis, there's a new brain-computer interface (BCI) system that's opening up real-time, natural conversation for people who can't speak.

Privacy risks are hiding in plain sight, as your personal data is likely being collected, tracked, and sold without your knowledge.

VenHub, a fully autonomous, AI-powered smart store just opened at the LAX/Metro Transit Center in Los Angeles.

A woman's Facebook account takeover reveals dangerous social engineering tactics and provides lessons on recovery, avoiding scams and enacting stronger security measures.

Shanghai engineers are using 432 walking robots to relocate a complex, preserving Shikumen architecture while creating space for a modern underground hub and cultural center.

Investing in Stocks and The Game of Monopoly

Stocks & Mutual Fund