Originally Posted by
LongviewTX
Technically this program is more than possible - think about stock options the company issues to its employees - these are additional shares issued by the company and not taken from existing shareholders. So why not do that with your customers if you can do that with you employees?
I think the issue with not having such an arrangements is not because it's technically possible but because:
- first of all in my opinion most Americans will just not feel comfortable owning individual shares - most people don't know how to deal with them and feel much better with cash or miles.
- there will be tax issues when selling these shares - as "tax cost basis" of these shares is uncertain (worse yet probably zero)
- share prices constantly change so from financial perspective the company will issue rewards inherently variable in value - not a deal-killer in and by itself but making gloom idea even gloomier
On the other side I like this idea for its creativity!!! Maybe you can create an airline that will implement such a program and break the ice?
The reasons you cite are all good ones. They could simply offer cash back, much as some credit cards do, and encourage or even enable you to *opt* to buy stock at the market price with that cash back. That would solve everything, but I really don't see how it is much different than just saying, "If you like us, own us."