How a stock market could work.....

  • Good Idea 1

    1. yes (1) 100%
    2. no (0) 0%

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    a stock market could work if you connect the share prices to the ROE of a company


    so every 1% a company has in ROE is worth 1,000


    then you add that to the total share price


    - You can't invest in your own company through shares
    - The starting share price would be 10,000
    - The amount of shares that can be sold by a company is based on the company value divided by 1,000,000
    - The Value of the shares will decrease when shares are sold
    - When 1% of a companies shares are sold off the total value of the shares drops by 0.5%
    - When a companies ROE is 0% no money is lost or gained
    - There would be certain time limits for owning shares in a company, 12WU 24WU 48WU 96WU
    - Time limits should be implemented so it gives everyone a chance to invest
    - Each player can only buy a maximum of 100 shares


    E.g Q-world's company value is 1,483,111,000 so 1,483 shares can be bought
    Lets say the share price is 200,000 and the company went up 50% in 48WU's then if u owned 100 shares
    It would mean your return would be 200,000 + 50,000 = 250,000 then times that by 100 = 25,000,000
    So you will have invested 20,000,000 and then in 48WU made 5,000,000
    Once your time is up they are instantly sold, so you would have owned 14.83% of the total possible shares
    So once sold off the share price would drop by 7.415% of 250,000 = 18,537.5 then rounded = 18538
    New share price of 250,000 - 18538 = 231,462


    The money you invest would obviously be recorded but would go to the company you are buying the shares from, So when the money has to be returned it is automatically taken out, meaning you can go bankrupt if you spend all the money and cant make it back


    Obviously not everyone will invest in the same company at the same time and so some deals may run out from other players that are invested in the same company thus affecting the total outcome you can receive


    E.g. Using the example from before of Q-world, if it started with share price of 200,000 but say your really unlucky and 8 players that each bought 100 shares when the price was 160,000 sold there shares 1WU before your deal ends then the basic share price would drop and so you would loose money as the new share price which is lower than your original investment.


    Once again i have killed a lot of time thinking of all this, comments much appreciated


    no one seems to take an interest in many of the topics on the forum :S


    Anyway this method would not necessarily mean only the rich get richer because the newer companies that are up and coming usually increase there ROE more than the high end companies and due to limits on stock and time means no one can really capitalize on everyone else, since you can only give so much money away to invest


    later guys... :thumbup:

  • first sorry, cause i'm short on time...

    Zitat

    Q-world's company value is 1,483,111,000 so 1,483 shares can be bought

    that's wrong, the company value was at that time 14,831,110,000 = 14,831 shares


    i'm against a stock market:
    - first of all i would only place shares if i need money - i need not more money ;)
    - i would place them, if i would know, that the company value will decrease (e.g. due to quality research) - i would get a lot of money and could buy the shares back for less money :D

  • The very core problem with a stock market is that people could pay to support their friends, espcially newly joined players. New players would also beg for money. It would be unfair for others.

    D,D&D SP 8)
    Both normal round & speedround


    "When they discover the center of the universe, a lot of people will be disappointed to discover they are not it."
    --Bernard Bailey

  • The very core problem with a stock market is that people could pay to support their friends, espcially newly joined players. New players would also beg for money. It would be unfair for others.


    ahh yer =]


    well was a nice problem to try and crack =]


    thanks for everyones posts