Buisnesses Shares

Guest · Post by **Guest** » 03.10.2009, 17:49

Ok so here is an idea I have been thinking about for a while, it still needs some flattening out and doing up but otherwise I think it could really contribute towards the game in a positive way. Please read all of my post before dismissing this idea as a stupid, previously-suggested failure

My suggestion is that at each different company level, ie. Retailer, Industrialist, etc. your company has a certain amount of stocks, a number which increases as you attain the better ranks. So for the sake of argument, lets say I am an Entrepreneur. For my company level I would be awarded, say, 100 shares or stocks or whatever you want to call them. (the number is purely fictional and for the sake of this scenario, I would appreciate it if some mathematically orientated people could help smooth out the numbers of stocks/shares, etc.).

These stocks/shares are a physical quantity in the game, originally owned by yourself. Each stock/share contributes to a % of the money you receive from making money in anything. In this case, each stock/share would be 1%.

What my suggestion is that other companies can then buy stocks/shares in your company, for a price you determine, through a contract. So say then someone comes along to me, the Entrepreneur, and buys 20 of my stocks/shares in a contract. I receive a cash injection which would be beneficial to smaller companies. In return, the purchaser receives 20% then of money I make from contracts, selling goods, etc. An exception could perhaps be the sale of coins.

In order to prevent abuse or [censored] mistakes, there could be a safety precaution put in place - namely, that you must own at least, say, 20% of your company, meaning that you cannot sell ALL of your stocks/shares, retaining some of the profit for yourself.

On a final note, the contract should have a time period. So lets go back to the scenario, the purchaser of my stocks and myself, the Entrepreneur, have agreed that the contract should last for a time period of 2 weeks. So then, I receive the money he used to purchase my stocks/shares, and for 2 weeks (in order to make a return on his investment) the purchaser will receive 20% of my company revenue. This will make the game more realistic, will add in a risk element to investing, and should hopefully prevent abuse. It should also make the game more dynamic, something which I think is sightly lacking.

Please post any constructive criticism and/or thoughts and opinions. I won't take kindly to "it's a bad idea, noob.", or something similar to that.

Hoping to see this implemented into the game,

Blob Inc.

EDIT: Sorry for how long winded this is, but it requires a lot of explanation.

Guest · Post by **Guest** » 03.10.2009, 17:55

Ok so you buy 80% of my company for 4weeks and I charge you 1bil.

For the next 4weeks I decide just to make gas and not sell any. At the end I'm 1bil up and have loads of gas to sell and you have nought?

What happens then?

Guest · Post by **Guest** » 03.10.2009, 17:58

Mhmmmm good point, ok how about this -

In order to buy a portion of a company's stocks/shares you must be at least 3 levels above them. It won't hurt you as much if something like that does happen, and the majority of companies, especially the smaller ones, won't do that, as they can't afford to run their factories or whatever for a long period of time without selling contracts.

There are still holes in this but that's I can offer =/

Guest · Post by **Guest** » 03.10.2009, 18:21

for many people selling 20% of revenue would make them unprofitable also the small companies will be forced into long contracts just for some money (it would be abused badly). I have some ideas

1.Small companies i think should not be allowed to do it.

2.If you do it only for billionaires and above and they can only sell to the maximum of 49.9%.

3.The shares will be traded on the market. There will be a new section on the market for the shares and it will be like "JOE INDUSTRIES selling 2000 shares for 1.50 each" obviously you can buy only part of the offer.

4. companies pay divedends and trading results(revenue, net profit, profit, cash, assets, etc..)

5.There will be NO VOTING SHARES as the original owner is still in control as well as NO TAKEOVERS and NO MERGERS

6. The company can buy forcibly buy back shares to make sure they always have enough shares within the 49.9% to sell incase of an emergency

7. Also the old shares that used to be listed will be sold again

Guest · Post by **Guest** » 03.10.2009, 18:25

One slight problem. Who in the world would want to sell his company? I mean, I know the company would get caps for selling it, but he would be making a lot more than selling it to other companies and dividing his profits and assests.

Guest · Post by **Guest** » 03.10.2009, 19:47

To raise cash

Guest · Post by **Guest** » 03.10.2009, 20:15

COTAL wrote:One slight problem. Who in the world would want to sell his company? I mean, I know the company would get caps for selling it, but he would be making a lot more than selling it to other companies and dividing his profits and assests.

He wouldn't actually sell it, you sort of hire part of that company for an amount of time (2 or 3 weeks) by contract and get a certain percentage of the cash that comes in, as I understood it.
I think it will be very complicated to do the math on how to get this to work right without any flaws, but it sounds interesting.

Guest · Post by **Guest** » 03.10.2009, 20:29

yes
and you could charge alot if you know your company is very profitable many will want to buy shares.

But big companies would buy alot from alot of companies thus increasing their profits alot. If max is 49.9 then big companies buy fast 49.9% and their company is "theirs"

i suggest to put a limit for how many companies you can buy shares too

Guest · Post by **Guest** » 04.10.2009, 00:11

These all all excellent idea's, I agree with all the points posted so far, which are all good. To summarise then -

1. A limit on how many shares a company can buy at a single time.
2. Small companies should not be allowed to do this? I think we need a bit more discussion on that, perhaps an exact level needs to be worked out?
3. Shares trading on market sounds interesting.
4. Divedends and trading results? Despite playing a business game I don't know too much about this so I won't comment.
5. Voting shares, no takeovers and no mergers, very good point.
6. Companies forcibly buying back shares? Sounds good but could be open to abuse, there will have to be very exact rules on this.
7. Old shares that used to be listed will be sold again? Yes this is a good point as well. Shares are like physical quantities, and once the time period on a contract has expired then the bought shares will be returned to the original company.

Thanks a lot for the comments guys, keep it coming

Guest · Post by **Guest** » 04.10.2009, 00:12

COTAL wrote:One slight problem. Who in the world would want to sell his company? I mean, I know the company would get caps for selling it, but he would be making a lot more than selling it to other companies and dividing his profits and assests.

If you're in need of a quick cash injection then you may be tempted to sell off these temporarily. It is also a good way for bigger companies to back smaller companies, eg. friends, as there is no current way to do this? I'm just speculating for the most part but still....

Guest · Post by **Guest** » 04.10.2009, 03:04

Yeah, we need find a way to incorporate a stock market of some kind (that actually works) into kapi.

Lets be honest, this game is kind of fun for awhile, i like it a little, but your goal is to do the same thing everyday forever and ever.

I set my factories to produce gas, i sign the oil contract, i set my gas stations to sell gas.

I set my joinery's to produce wardrobes, i sign the wood and steel contracts (or buy on the market), i set my furniture stores to sell wardrobes.

I ... (fill in the blank with your company)

We need a way that we can make (and LOSE) money. Right now, on both realms, kapilands has basically degraded into a game of setting your productions. A real stock market that fluctuates up and down based on, possibly, profit vs. FA (a "good profit" could be 10%, which would "level" your stock, more = increase, or maybe even the devs could find a way to have the game figure out what my "profit" is, and raise prices based on greater profits, lower based on lower profits)

Maybe we could try to lock down industries a little bit, so their profits are less, and make it so that we are capible of losing money if we don't run good businesses.

I want to be able to worry about my company

Guest · Post by **Guest** » 04.10.2009, 07:48

the level should be manager

Guest · Post by **Guest** » 04.10.2009, 08:26

Definitely APC Production...that's one of the main reasons I suggested it, right now I'm sort of stuck making oil day after day and sending contracts...:S

Guest · Post by **Guest** » 04.10.2009, 08:31

i like kapilands at it is now
i would like it to have alot more atractive features thus i dont think this will happen

Guest · Post by **Guest** » 04.10.2009, 08:41

i think the level should be entrepreneur since i got to manager very quickly just after selling a bunch of coins

I agree that i would like to worry but I don't want kapilands into a very volatile a market were you can lose have your money over-night and find your main product is suddenly unprofitable.

If the company gets restarted or deleted the assets, cash and stock gets distributed to the shareholders so that no-one can get a couple of million in investment and suddenly quit causing the investor heartache.