The Effects of Unequal Changes in the Initial Capital on the Dividends of Two Competing Investors in a Stock Exchange

Abstract

The effects of unequal changes of the values of initial capital on the dividends of two competing investors trading in the same environment were quantified using a numerical method. From the results of our analysis, we observed that in the events of unequal upward variation of the initial investment values of the two investors, there is a predominant increase in the dividends of the first investor while the second investor is susceptible to financial liquidation. This important result will be useful in providing some insight on the allocation of capital to investors for effective competition.