| Monday, December 2, 2013 - 02:11 am |
There is an option in the corporation to repurchase shares. However, every single time I use that function, my country or enterprise itself buys the shares instead of the corporation. Is this a glitch?
| Friday, December 6, 2013 - 04:13 pm |
It depends on the situation.
depends on what you click.
please do it again, and give us all the details so we can look into it.
| Wednesday, December 11, 2013 - 06:41 am |
I've actually tried it on multiple occasions before. I'll own controlling power in a corporation and click repurchase shares. Each time it was processed with my country or enterprise using their own cash to buy shares. I know for sure that the corporation did not repurchase because the amount of shares outstanding was the same.
| Wednesday, December 11, 2013 - 12:04 pm |
If I'm right about game mechanics it is when you go IPO of your Corp all the 100% of the shares are in your Enterprise/Country hand at the start as the Corp de-facto is owned by that Enterprise/Country. From here they are sold to whoever wants them and the money goes right into the Enterprise/Country wallet.
So if you push the repurchase button the Enterprise/Country will buy the shares up to 100% when the Corp would regain the state/private corp status.
| Thursday, December 12, 2013 - 06:18 pm |
Well if that's the case, then the game got it wrong. That's not how share repurchase works. Repurchasing simply shrinks the pie and everyone's percentage holding proportionately goes up.
| Thursday, December 12, 2013 - 07:08 pm |
I think what you mean is share Splitting/merging when you get 2 Shares for every 1 you have or get 1 for every 2 you have. Then the Overall number of Shares increase/lowers but anyway the percentage Holding of everyone stays the same, only the percentage per share decreases/increases. This happens automatically ingame when the Corps Worth is high/low enough.
| Thursday, December 12, 2013 - 08:15 pm |
A Reverse Split is not the same as a Repurchase.
| Friday, December 13, 2013 - 08:30 am |
Of course its not Rage, but I think Banker mixes those two up
| Saturday, December 14, 2013 - 04:33 pm |
When a share holder (the enterprise) repurchases shares, the share holding of the seller goes down and the share holding of the enterprise goes up (by the same percentage).
the total number of shares outstanding remains the same.
Only if corporations repurchase their shares (in the real world), the number outstanding is reduced and percentages of other shareholders increase.
when an enterprise tries to repurchase all the shares and make the corporation private again, it may succeed or fail.
nobody can force anyone to sell their shares.
investment funds may do so automatically if they make a good profit but others may decide as they wish.
| Sunday, December 15, 2013 - 12:21 am |
Wait, so repurchasing is a buy order from the enterprise? Then why do we get two options for repurchase and buy? A little redundant, no?
| Sunday, December 15, 2013 - 12:27 am |
And Borg, this is my understanding of a repurchase and a share split/reverse
Scenario A - Repurchase
Corporation has 8 outstanding shares. With shareholder A, B, C, D. Each shareholder holds 2 shares. D decides to sell his shares. For the purpose of this hypothetical, assume that A has controlling share despite everyone having equal shares. A, using the corporation's cash, repurchases D's shares and now every shareholders holds 3 shares each.
Scenario B - Reverse split
Corporation has 8 outstanding shares. With shareholders A, B, C, D. Each shareholder holds 2 shares. The corporation decides to reverse split their shares 1 for 2. Now each shareholder holds 1 share.
What was explained in the above explanation from the GM is an example of the enterprise, a shareholder of the corporation, buying more shares as a shareholder. A repurchase is what I have explained in scenario A.
| Sunday, December 15, 2013 - 02:20 am |
That was my understanding of the term as well. Apparently the game has no method to reduce share numbers outside of the Reverse Split.