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Simcountry is an Online Digital World where you are the President of a country.
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Stock Options

Simcountry: Simcountry Bulletin Board  Stock Options

Xeitia

Wednesday, February 04, 2004 - 11:38 am Click here to edit this post
Rather taking out loans an enterprise (or rather the CEO) should be aloud to sell some of their enterprises stock. It would open up a new Market that would simply be stock of all the enterprises that exist. The stock should of course function as stock does in the real world.

Firstly there should be 2 kinds of stock. Free Market Stock and Private Stock. Free Market stock would obviously be open to the Free Market. But Private stock could only be transferable to the Enterprise from which it was bought. The conditions for Private stock would be much different than Free Market Stock.
1. Low Cost High % of Shares
2. Mixture of both is NOT aloud (Enterprise is either Open Market or NOT)
3. Higher Dividends (but still lower than interest on a loan)


Stock figures would ofcourse be based on overall worth of the Enterprises corps. With stocks implimented Enterprises would not go into debt as much since the assets aquired from selling stocks would be only possitive ,but the enterprises overall earnings internally would drop due to dividend pay out. Loans in this sence would be only for quick cash in small amounts. Loan INterest should also be increased ofcourse to allow for decent dividends.
There are probably some other things that should be key differences. The idea is Private stock a CEO doesn`t have to worry about loosing control BUT will be paying out more in Dividends.

Shares of stock determine dividends which can come from profit (so basically a Enterprise will pay divedends out to other Enterprise CEO rather than interest from a loan. BUT this value will be smaller because the Enterprise CEO will retain the stock which has more value than a given loan for many reasons)

If a Enterprise CEO wishes to sell its stock back to the Enterprise the enterprise MUST buy it at a reasonable price (this is true in real world so seems apropriate. Reasonable price is is not nessasarily market price but rather determined by score or something... Likely to be lower than market price but guarentee sale back to Enterprise). This ofcourse may force the Enterprise to take a loan or sell more of its stock to other willing buyers.

If the stock value climes enough the stock should split. This will allow for long time holders to have more claim on the enterprise and allow for the Enterprise CEO to divy up the rest of its enterprise in smaller fractions.

THe KICKER-
If another Enterprise CEO ends up with Majority of the stock (Not necessarily 51%. Pursay a Enterprise CEO sells 60% of its shares to 6 different factions each of which gets 10%. The Enterprise CEO still has full control with only 40% of the stocks. Then one of the buyers of stocks needs only purchase 31% of the free market stock)
When a different Enterprise CEO ends up with majority of stock it assumes control over all corps as long as it retains enough stock. This will likely not be very permenent since the Enterprise in question will want to gain control back and do everything in its power to do so. And there are many options for it still.
1. Buy as much of its free market stock that it can.
2. Idly wait while earning profits from its Enterprise and its stock in other Enterprises. When stock becomes low owning players may panic and wish to sell. Or they may hold out and sell when it is high. Either way eventually all free stock can be aquired.
3. Buy out another enterprise

I think this should be implimented because currently their exists no form of "conquering" for Enterprises. If implimented both aspects of the game (Countries and Enterprises) would have a means of taking over something.

You may notice I did NOT include Presidents from being able to buy Stock. This is mainly since they be able to gain control of an Enterprise. However, this could be a feasable feature but would need much more consideration since this would create direct conflict between not just Enterprise to Enterprise but Country to Enterprise.

The Enterprise to Enterprise conflict I think is very desirable:)

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