Stock exchange Summary

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ewger
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Stock exchange Summary

Post by ewger »

I'm writing an overview paper about introducing stock exchange mechanism into the game.

So, this is a summary thread where I'll try to collect and discuss all ideas that where previously posted. Once we have a full list, I will compare all the features and analyze all the suggestions concerning the "Stock exchange" subject.

Comments, corrections and links to unrevised posts are appreciated.

A common view of the problem:

Stock exchange enable players to trade shares of companies or any possible economy agents in the game. It has UI just like "bank" operations do.

Financial model is something like Forex Trading Platform, and it may resemble real life model only a little (Check out "Meta Trader" demo http://www.metaquotes.net/files/mt4setup.exe).

A list of suggestions (statements may exclude each other):

:arrow: share trade process on stock exchange can be done only with help of a special broker company that has a special trading license. Both broker agent and stock exchange should have buildings on map. Player can click them to see the UI (in case of broker agency they would be a contract agreement for a period of time). Game should also have player's "Property" or shares list dialog.

:arrow: banks, stocks exchange and other economy agents are assigned to towns local authorities. They get available with city growth.

:arrow: anti monopoly economy agent may be introduced. It will subsidize small companies to balance the game but only for a limited period of time.

:arrow: Trade process on stock exchange can be mediated (balanced) by third type fake Financial companies - AI agents. Player may also buy their shares.

:arrow: different trading options should not be available at all once. They we'll became available with time as player's company value grows.

:arrow: buying shares in the industries (other economy agents)

:arrow: player can control the amount of his company shares to trade on market

:arrow: player can control or prevent overtaken procedure of his company unless he is a bankrupt (one player can buy share only if other player has declared "IPO - Who wants to buy my shares for XX% ?")

:arrow: we need an UI dialog for the merging procedure, where statistics like debts, vehicles, stations, etc is reported.

:arrow: It should only ask for the last 75% if anything

:arrow: you can only have shares once you have a HQ (Subsidiaries patch).



A list of closed questions/problems:

Is current trade of company shares equivalent to a stock market trade?

Q: May shares bring to bankruptcy?

A: A stock market crash shouldn't put you in to bankruptcy unless most of your assets are in shares. If you've got a lot of cash you'll be fine; at most you'll loose a lot of profit. The real worry is that people will stop paying for your services when their money goes away.

A list of opened questions/problems:

Is current trade of company shares equivalent to a stock market trade?

What is a better way: player 2 player (P2P) share trade or a broker interface stock market trade? Or both?


http://sourceforge.net/tracker/index.ph ... tid=636368
When you buy share, your money goes in the pocket of the
previous owner of the share. Not to the company.
Who initially owns the shares?

What are the possible vulnerabilities of company to be overtaken with a cheat ?
http://sourceforge.net/tracker/index.ph ... tid=636368

What is the role of shares investment mechanism?

Do all companies should have equal initial starts conditions when draw investors (that are Player, AI Players and Balancing AI agents) to their shares? How rate buying rate initially should change and what are the influencing factors?

How dynamic rate mechanism (buy/sell) should be simulated (something like M/G/1/N ? or more complicated Markov chains?)

BID/ACK shares trading model?

A list of already analyzed posts:

http://www.tt-forums.net/viewtopic.php? ... k+exchange

http://www.tt-forums.net/viewtopic.php? ... k+exchange

A list of posts to analyze:

http://www.tt-forums.net/viewtopic.php? ... k+exchange
http://www.tt-forums.net/viewtopic.php? ... k+exchange
http://www.tt-forums.net/viewtopic.php? ... k+exchange
http://www.tt-forums.net/viewtopic.php? ... k+exchange
http://www.tt-forums.net/viewtopic.php?t=26125
Last edited by ewger on 15 Mar 2007 14:56, edited 11 times in total.
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richk67
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Post by richk67 »

You may also want a read of my shares trading idea.

http://www.tt-forums.net/viewtopic.php?t=26125

I have had some further thoughts on it:

1) The shares are bonds that are automatically sold/cashed in on their end-of-term. This way, no player or group of players, can perpetually block share buying in another company.

2) Shares are intended for investment in infrastructure only - ie. the cost of construction & new vehicles can come out of the shares money, but not running costs or buying other's shares.

3) There should be a bonus to investing in the early life of a company. eg. double or triple dividends in that period, or perhaps a longer bond-life. eg 25 years instead of 20.

Just some thoughts.
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