> Do stock certificates increase as the stock increases?

Do stock certificates increase as the stock increases?

Posted at: 2014-12-05 
I know it may be a silly question but say I have 200 shares of stock valued at $40 a share, if in 5 years the stock is $60 a share. Will my 200 shares be worth $60 a share?

Yes.

You paid: 200 x $40 = $8000.

It went up by $20: $60 - $40 = $20.

200 x $60 = $12000

So, if you sold at $60, your total gain is: $12000 - $8000 = $4000.

A certificate is just a piece of paper (or now zeroes and ones in a computer) that say you own the stock. Yes, your share value rises and falls depending on demand and other factors.

Yes, but to sell it, you turn in the certificates to a brokerage firm (and set up an account) : or you sign away the certificate to someone and they give you $60 times 200 or $12000 (not likely)

Yes

Yes

The number of shares stay the same unless the company files for a split.

But if you elected DRIPS you could end up ( assuming a 2% p.a. dividend ) with 220 shares worth $13200.

I know it may be a silly question but say I have 200 shares of stock valued at $40 a share, if in 5 years the stock is $60 a share. Will my 200 shares be worth $60 a share?