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Stocks - Your opinion? - Narcotic - 12-09-2011

He asked me to make this poll about his idea; Here it is.
If you've got any ideas, how to improve the idea, post here.

Here's the quote:
' Wrote:heres my stock sytem if it dont work mabye say a fix also would you buy stocks if a sucessful code name dealer sold em?

this is my idea

freelancer stock system
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stocks off income

these stocks would be uniqly designed for freelancer as they would work soley off of the profit gained by said business, thus making for no actuall loss of profits to either the business owner, or the stock holder so long as the business is making money and even if the business is not making money the stock holder will not actually be lossing money his income off the stocks would just be at a stand still.

here is an example of how it would work soley off the profit, i will use samura for my example.

lets say that samura fills a few contracts and makes say 10m but spends 2m filling the contracts. so that leaves samura with 8m that will get put into the samura bank account and the stock holders money will only come out of the 8 m since that was there profit not their gross income.
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alright now this is how the stocks would be determined so to speak.

now lets say that you make 500m in one month first of all you would determine what percentage of your income would each stock be worth so for this ex. lets make each stock worth .02% of your income thus making each stock give the stock holder 100k of your income per month now since it is not smart to sell over 49% of your stocks this would allow you to sell 245 million stocks in total. now the base sell price (the ammount you will sell to the public for) is completely up to ther person selling the stock but is majorly influenced by the willingness of people to buy said stock.

now what would happen if you sell all 49% of you stock? well obviously you would now be giving away 49% of all you income. BUT WAIT there is ways to keep this from happenning for long periods of time! since one of the major goals in the stock market for stock holders is to buy high sell low, there is no reason why the business who origionaly cannot buy back their stocks from people willing to sell it when the average price for your stock drops. what will cause my stock prices to drop you may ask? well. if said businesses income slows down then the stock holders start getting less money from their stocks and the stock price drops. (WARNING though faking a decline in income WILL work, if you do it to often you stocks will not be consistant and people WILL NOT WANT THEM) and when the prices drop enough you very well may be able to buy back a portion of your stocks for even less then you origionally sold them. after you buy back some of said stocks you can then wait for your business to increase again and you stock prices will raise accordingly. this processes can essentialy be repeated an infinate ammount of times and everyone will keep making money.
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now another important factor is how will you sell them (will they be first come first serve etc.)

if you were to sell them on a first serve first come basis you may not be able to make as many funds. this is because, (in the case of somone who does shipping etc.) people would be able to just look on the comms channel and see if you have a shipping contract coming up (which would cause your stocks to rise) and buy some stocks before they took a price leap and quite possibly leave no stocks left for people who would have quite possibly paid more for the same stocks, thus causing you to make less money then you could have.

the other way to do it (which is my personal favored way) would to be as a 'constant auction' so to speak. now a constant auction would work like this for ex. say billy here wants to buy some stocks that are about to go up in value but hasent yet. so billy goes and says i want to buy X stocks for Y price (Y being your currently listed price) now you log on and see this offer, and you make a post saying "bid noted, 'X' ammount of stocks (X being the ammount of stocks billy wanted to buy) are now for auction for the next 24 hours". this system would allow fred over here who is willing to pay more for the stocks to offer more money then billy thus creating a biding war that would last 24 hrs, and thus making you the most money possible.
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how would one keep track of all this one might ask?

well the anwser is simple. spreadsheets. these would be the best way to keep trak of all your stocks as well as the stock and sales history.

the spread sheet would also be important for keeping track of who has how many stocks as well as make calculating how much each person get nearly instantanious.
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how often would payouts occur?

at any rate you wish, (though 4 quarters per year is general considered the MINIMUM)

however i would personaly suggest doing monthly payouts. why you ask? well this is becaues if people end up having to wait to long for their money they will not see it as worth it (as often happens in FL). monthly payouts however are also long enough apart that your not spending to much time (in comparison with a whole month) making payouts and updating your spread sheets.



Stocks - Your opinion? - Hone - 12-09-2011

I dont understand it.


Stocks - Your opinion? - Cris - 12-09-2011

You need to automate the process, nobody will be willing to take the time consuming job of keeping the spreadsheets updated, also manually editing the sheets could lead to mistakes or intentional manipulation to inflate/deflate prices, which means abuse of the system, and will lead to the anger of everyone, sancshuns, oorp hatred, and diarrhea


Stocks - Your opinion? - The Mole Miner - 12-10-2011

' Wrote:You need to automate the process, nobody will be willing to take the time consuming job of keeping the spreadsheets updated, also manually editing the sheets could lead to mistakes or intentional manipulation to inflate/deflate prices, which means abuse of the system, and will lead to the anger of everyone, sancshuns, oorp hatred, and diarrhea
actually i had every intention of running it.

on the corruption issue i planned on making the spead sheet public


Stocks - Your opinion? - Huhuh - 12-10-2011

I'm sure someone competent with C++ could write a program to make the values of stocks fluctuate automatically.


Stocks - Your opinion? - leonidos - 12-10-2011

dont get the idea


Stocks - Your opinion? - The Mole Miner - 12-10-2011

' Wrote:I'm sure someone competent with C++ could write a program to make the values of stocks fluctuate automatically.
well the values would fluctuate based on monthly income if ppl saw that there were lots of sales in one month stock prices would go up ass ppl would want them

on the opposite side if ppl saw that there was very few income one month then the stocks would drop in value.

as for C++ i only have a VERY basic understanding of it as i stoped taking the tutorial for it. (it would take a couple months to finish)


Stocks - Your opinion? - The Mole Miner - 12-10-2011

' Wrote:dont get the idea
basicly ppl get a % of your income (my suggested percent is .02% forcing them to buy lots of stocks) for each stock so basicly.....

1 stock = .02 percent of said businesses income.


please do not reflect you vote of this post alone as this is stocks broken down to their simplest form with no details at all involved.


Stocks - Your opinion? - Veygaar - 12-10-2011

I even'd the votes:D

Here's what I say, if it's gona be done, it needs to be VERY user friendly, or else no one will take the time to do it.


Stocks - Your opinion? - Cris - 12-10-2011

I thought you were planning on including all factions, because I have worked on similar ideas for a stock market before, but I included all the trading factions in my plans. :P

If done with your faction/char only the system could work. However I still see a problem, I could buy some of the shares and forget about it completely, using your system as a cash cow only, and getting my money at the end of the month without caring much about it, and doing nothing for the faction, while its members do all the job, so there must be some kind of incentive for people to buy and sell shares.