| Thursday, August 23, 2012 - 05:28 pm |
I think the stock market of the simcountry have actually lost its meaning since it doesn't provided the liquidity stock market have. Furthermore, I realize stock market in SC have become a place for cooperate owners to manipulate their own company's stock price. There, her is my suggestion.
1. Reduce the amount of stock each entity can buy and sold every game day / month
This will make manipulation of stock price become more difficult since no body can now sold huge amount of shares at peak time and buy them in huge quantity when the company's share are at the bottom
2. Reduce limitation for stock transaction.
This will allow anyone (both company/country and IF) to buy and sell any shares in any company and they will be able to rule the company when they are the largest share holder and increase the amount of entity that will participate in the stock market and provide more liquidity to the market.
3. Allow short sell of stocks
This will further encourage liquidity in the market and make sure the market can find the true value of a company even easier.
PS(possible way to achieve it: transfer all the stocks own by all the entities in the game from every individual to a large broker and the broker will lend the stock out as long as they still have enough amount of share of the company left and the lender have to pay interest to the broker)
Together, I think these policies can help the stock market in SC become more mature and encourage SC to look even more like real world
| Thursday, August 23, 2012 - 08:24 pm |
The lack of liquidity is because people allow the game to mismanagement their portfolio. And presidents don't pay their employees enough for them to have the money to invest. Every month my countries IF has like i dunno 8Billion or so just in new contributions dividends aside. And I spend it.
So I think on your wrong on your first point. If liquidity is an issue then people need to be able to take advantage of opportunities. If they have limitations to how much they can buy or sell you are limiting those opportunities. Also this doesn't simulate real life either.
I don't understand 2
And 3 well someone suggested this not that long ago, and I explained all the reasons this won't work. Most obviously you need a broker that owns the share. but also PE ratio's take a while to change, SOOO.... buying and selling future values is cheatting because they are 100% predictable. Short selling would completely ruin the stock game, and doesn't make any sense to implement it, and would be way to hard to implement it.
So who would be the broker? The broker would then have to own large amounts of various stock, does that mean they have Q's of money to spend to get the intial shares. Because in order for it to be effective and actually relevant the broker would need to own majority of stocks.
If there were stock indexes, and mutual or hedge fubds CEO's can run for the public then it would make sense to short sell on the indexes themselves. But other than that it will prove to dillute liquidity moreso. Just teach the presidents to run their countries the right way and you will see a heavy in flow of cash to the stock market
| Friday, August 24, 2012 - 06:00 am |
For point 1: Yes, it will reduce liquidity, but it will also make manipulation of the stock price become more difficult, moreover, it will also make stock exchange in the game become more realistic since people in real world can't buy a few percent of a company at once, right?
For point 2: I mean that SC should lift the restriction on stock transaction of different entities so every entities, enterprise and country can buy share in any listed company (sorry for the misleading description)
For point 3: You have misunderstand my ideas. In my suggestion, the broker will only be the middle man on owning the share. This will mean that every entities will own their share though a broker and the broker can lend out their clients' share as long as they still have sufficient amount of it to handle any transaction make by the customers. And the the broker, it can simply be the GM.
| Friday, August 24, 2012 - 07:38 am |
okay 1 is bad because it negatively effects me, along the same lines as you put it. But I think if you fixed the market value engine then this problem will solve itself. As market value doesn't seem to follow earning potential. I think if they fixed that this hindrance wouldn't need to be instated.
2 i get it now. I like that idea. IF's buying their own country stock, presidents buying directly into the stock market. sounds like a valid opportunity. This will for sure without a doubt increase the liquidity in the stock exchange. If it went to poll I'd still vote against it, as a lot of work I did would have been all for nothing.
3 The primary problem is the incentive of the broker is gone. The short sellers would know if the stock is going to gain or lose. When stocks go up they go up for months, they're is no risk, and no incentive for the broker. And initially the broker would also take shares that would be bought off the market. And if GM's were given the job then it WOULD be fine, but how much money enters the system would have to be retired elsewhere. I don't trust them with it. If my profitibility decreases again, Imma find you. jk
It just too much work, if players don't fell like buying shares why would they rent them?
| Wednesday, August 29, 2012 - 04:40 pm |
1. More restrictions on the share market will make it boring and discourage participation. That means less liquidity.
2. This doesn't seem like a change.
3. Short selling would provide an incentive for players to make corps unprofitable. Short sellers also could profit too easily by shorting the deteriorating corps of inactives. None of that is realistic or involves skill.