Millionaire Teacher by Andrew Hallam

How is it created?
    Imagine Willy Wonka (from Roald Dahl’s classic novel, Charlie and the Chocolate Factory ) starting off with a little chocolate shop. Having big dreams, he wanted to make ice cream that didn’t melt, chewing gum that never lost its flavor, and chocolate that would make even the devil sell his soul.
    But Willy didn’t have enough money to grow his factory. He needed to buy a larger building, hire more of those creepy little workers, and purchase machinery that would make chocolate faster than he ever could before.
    So Willy hired someone to approach the New York Stock Exchange and before Willy knew it, he had investors in his business. They bought parts of his business, also known as “shares” or “stock.” Willy was no longer the sole owner, but by selling part of his business to new shareholders, he was able to build a larger, more efficient factory with the shareholder proceeds, which increased the chocolate factory’s profits because he was able to make more treats at a faster rate.
    Willy’s company was now “public,” meaning that the share owners (should they choose to) could sell their stakes in Willy’s company to other willing buyers. When a publicly traded company has shares that trade on a stock market, the trading activity has a negligible effect on the business. So Willy, of course, was able to concentrate on what he did best: making chocolate. The shareholders didn’t bother him because generally, minority shareholders don’t have any influence in a company’s day-to-day operations.
    Willy’s chocolate was amazing. Pleasing the shareholders, he began selling more and more chocolate. But they wanted more than a certificate from the New York Stock Exchange or their local brokerage firm proving they were partial owners of the chocolate factory. They wanted to share in the business profits that the factory generated. This made sense because shareholders in a company are technically owners.
    So the board of directors (which was voted into their positions by the shareholders) decided to give the owners an annual percentage of the profits, known as a dividend, and everyone was happy. This is how it worked: Willy’s factory sold about $100,000 worth of chocolate and goodies each year. After paying taxes on the earnings, employee wages, and maintenance costs, Willy Wonka’s Chocolate Factory made year-to-year profit of $10,000, so the company’s board of directors decided to pay its shareholders $5,000 of that annual $10,000 profit and split it among the shareholders. This is known as a dividend.
    The remaining $5,000 profit would be reinvested back into the business—so Willy could pay for bigger and better machinery, advertise his chocolate far and wide, and make chocolate even faster, generating higher profits.
    Those reinvested profits made Willy’s business even more lucrative. As a result, the Chocolate Factory doubled its profits to $20,000 the following year, and it increased its dividend payout to shareholders.
    This of course caused other potential investors to drool. They wanted to buy shares in the factory too. Now there were more people wanting to buy shares than there were people who wanted to sell them. This created a demand for the shares, causing the share price on the New York Stock Exchange to rise. (If there are more buyers than sellers, the share price rises. If there are more sellers than buyers, the share price falls.)
    Over time, the share price of Willy’s business fluctuated: sometimes climbing, sometimes falling, depending on investor sentiment. If news about the company was good, it increased public demand for the shares, pushing up the price. On other days, investors grew pessimistic, causing the share price to fall.
    Willy’s factory continued to make more money over the years. And over the long term, when a company increases its profits, the stock price generally rises along with