01/ P
The stock story.
A principal right is designed around the baseline stock-token exposure at a specified term. It leaves the term’s dividend stream to the other side.
Price exposure remains.
“Principal” is not a guarantee.
THE EQUITY, RECONSIDERED.AN INTERACTIVE STUDY / VOL. 01
One stock.
Two stories.
Keep the stock.
Peel the income.
FIG. 01SEPARATE. UNDERSTAND. RECOMBINE.
COUPONPEEL01—P
Principal
01position
THE BASELINE EXPOSURE
HELD UNTIL THE SELECTED TERM
HELD UNTIL THE SELECTED TERM
01—Y / THE INCOME STRIP
Dividends
THE PAYMENTS WITHIN THE TERM
ONE SOURCETWO DIFFERENT RIGHTS
A SMALL SEPARATION.
A DIFFERENT WAY TO LOOK.
A DIFFERENT WAY TO LOOK.
Stock exposure and dividend exposure are different things. Pull them apart to see what each one does.
Interactive example01 / THE SPLIT LABMake the
Make the
difference visible.
A stock symbol. A span of time.
Two rights you can inspect.
All numbers below are fictional examples.
01
Use a whole number from 1 to 1,000.
Real dividends can change or stop. These scenarios teach the distinction; they do not forecast a company’s payments.
AAPL / COMBINED VIEWEXAMPLE DATA
REFERENCE POSITION01
$200.00
One illustrative position, before the two rights are separated.
INCOME ALLOCATION02
$1.00
Illustrative dividends within your selected term.
WHAT CHANGED?
Over 12 months, this fictional AAPL example assigns $1.00 to income. Peel the position to see the remaining allocation.
ILLUSTRATIVE ALLOCATION
$199.00+$1.00=$200.00
Principal allocation + income allocation = reference totalRead the assumptions behind the numbers
This is an arithmetic illustration, not a pricing model. Example annual dividends per unit: AAPL $1, KO $2, MSFT $3. Reference values: $200, $60, $400. These are invented teaching inputs, not live or historical quotes.
Income = annual dividend × scenario multiplier × months ÷ 12 × units. Income is rounded to cents first. Principal allocation = reference total − rounded income. The fixed total helps compare the two rights. Actual market prices need not add up this way, and both can lose value.
No discounting, fees, taxes, dividend reinvestment, payment calendars, corporate actions, liquidity or issuer credit risk is modeled. Zero months means no modeled future income. “Principal” does not mean capital protection. No real redemption, custody, voting rights or stock ownership is conferred here.
02 / FIELD NOTESSame origin.
Same origin.
Different futures.
The split changes which exposure
you are looking at.
It does not remove the risk.
02/ Y
The income story.
An income right is designed around the dividends attributed to that position within the term. If payments are reduced, the income story changes with them.
No payment is promised.
A suspended dividend can mean zero.
↗/ P + Y
Back to one.
Recombination illustrates bringing both matching rights together. In a real protocol, the series, amounts and redemption rules would have to match.