You don’t have to be a smart negotiator to understand the value of your income. A person with a hard-earned money income must be smart enough to understand that when it comes to making your home in a given day, you’ll be able to make a decent living.
The fact that your income is paid out to your boss is a big reason why so many people go through this. When you are paid out to your boss, you will get an additional percentage of your income. Since your boss is paid out of your paycheck, you must earn a share in those shares.
Because your paycheck is just money, you are likely to receive just a small percentage of it (say, one-twentieth) in addition to your boss. When you receive a paycheck, you are earning money in a similar way that you earned the previous month. This is the reason why you need to know whether or not you are getting a bonus or a profit-sharing scheme. A bonus is when you receive a payment of money plus an additional payment based on your current ratio of earnings.
A profit-sharing scheme is when your boss is giving you a portion of the profits. The reason why you are receiving a profit-sharing scheme is that your boss has decided you are worth more than the previous month’s earnings.
In a bonus scheme you are always getting paid in the same way, but your boss has the power to decide how much you can earn. In a profit-sharing scheme you always earn the same amount but your boss decides how much you can earn in a given time period.
Profit-sharing schemes were first used by the old-fashioned Wall Street brokers. The stockbrokers would pay their clients money based on a specific number of shares they had sold. The clients would keep the profits from the profits-sharing scheme.
The term was first used by the New York Stock Exchange in the nineteen-sixties to mean a profit-sharing scheme where you only earn a certain amount for every unit of stock sold. It was popularized in the mid-eighties by the Wall Street Journal, which was then the foremost name for the newspaper business in the United States. The Journal was founded by Harold Ickes, who used the name in a personal capacity while maintaining a public presence.
The idea of a profit-sharing scheme is somewhat dated, but I think it’s still a good idea. I remember a friend of mine, who was a big fan of the idea, writing about the idea in 1980s Wall Street Journal articles. He was a self-proclaimed millionaire, and he had just purchased a home on the south side of West End and lived with his friends there.
The idea for equity derivatives was not new. The idea may have been somewhat dated, but the idea still retains a lot of good aspects. A recent article in the Wall Street Journal (February 6, 2007) on the topic said that “The idea behind these deals is to create a new sort of corporate bond, one that isn’t tied to the firm’s equity.
In essence, equity derivatives work by creating a way for companies to borrow money for short periods of time. This can be accomplished using debt instruments, which are essentially similar to a bond. The difference is that instead of being tied to the companies equity position, the debt itself is not. One company may loan another company a certain amount of money, and then the company that borrowed must pay that company back, but only if the company that borrowed is able to repay the loan.
