Some kind of stock based company ownership.

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citizen2608
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Joined: Tue Oct 10, 2017 6:28 pm

Some kind of stock based company ownership.

Post by citizen2608 » Mon Mar 25, 2019 6:43 pm

This idea would not require any developer time. It incorporates RP aspects but it doesn't rely on them.

Ownership

Let's say I start a new "corporation" and I give it 10 million credits capital.

I could make a 1000 item schematic (e.g droid cmd modules) called "1 share in Corporation X" and sell 499 of them for 10k each. Not for the purpose of raising capital, but to give other players some ownership of the corp.

I would keep 501 shares so as to avoid ultimate ownership issues. (Because we don't have any way for a new majority shareholder to take control).

Could that work if I guaranteed to always buy back the shares at market value?

Pricing

With 1000 shares and 10 million capital, each share is worth 10k. If the corp makes 1 million profit, total assets would be 11 million and each share would be worth 11k. There would need to be a public record of the corps transactions and balance sheet in order to determine the total capital to everyones satisfaction.

Dividends

Let's say 50% of profits goes toward dividends. That would be for the purpose of making ownership and retention attractive, and to stimulate some stock trading. On the first of each month I figure out the last months profits and I bank tip each stock owner based on their number of shares.

Problems

You would have to trust my guarantee and my accounting. There is no way for another player to verify my actions or act as my deputy without access to my account.

It would have to be exactly 1000 shares because that's the maximum number of identically serial numbered items I can make. But that prevents counterfeiting, which is good.

I could keep my shares as one inventory item, a 501 stack in a factory crate. But other people would have issues storing e.g 100 individual shares. And we can't re-combine them back into a factory crate.

I would need to maintain a register of share ownership in order to tip the correct people each month. The initial register would be easy, but as people trade shares privately, there would need to be verification each time.

It's not easy to make a consistent profit. The opportunities are limited.

If the corporation deals with items and not cash (e.g retail versus banking), it will be difficult to determine the value of owned items and hence the corp value.

Discussion

What are your thoughts? Is this something anyone would like to participate in? Have you seen it done before? Can you see some more problems that I have not identified? Can you see some huge error in my logic that I have missed? Spelling mistakes? All input is very welcome.

citizen2608
Posts: 19
Joined: Tue Oct 10, 2017 6:28 pm

Re: Some kind of stock based company ownership.

Post by citizen2608 » Mon Mar 25, 2019 6:48 pm

I am basically taking inspiration from this https://eve-search.com/thread/272243-0/page/1

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Smallcorners
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Re: Some kind of stock based company ownership.

Post by Smallcorners » Mon Mar 25, 2019 7:20 pm

Profits from what?

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JamisonG
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Re: Some kind of stock based company ownership.

Post by JamisonG » Mon Mar 25, 2019 7:33 pm

I've always been interested in an idea like this for SWG. I will be watching this thread closely.
James / Jimmy / Jim - Discord @JamisonG
Vendor @ James' Lewts
/way 300 -3000 Broken Bridge, Corellia.
<MASC> Mercanaries, Artists , and Skilled Crafters

citizen2608
Posts: 19
Joined: Tue Oct 10, 2017 6:28 pm

Re: Some kind of stock based company ownership.

Post by citizen2608 » Mon Mar 25, 2019 8:03 pm

Real profits from providing a service or finished product. Not RP profits from RP activities.

I like the idea of a bank providing loans to players. E.g for setting up their own crafting business, or for a combat player to buy premium weapons, armor and attachments. Or for somebody to establish a town etc. But that is ripe for abuse without some kind of collateral.

I also think a bank is easier to do accounts for than a crafting business, because you don't have to try and figure out input costs or resource stockpile values or manage retail inventory etc.

I know RP'ing a bank manager sounds like about the most boring thing a person could do lol. But it could be fun ingame. You have a nicely defined scenario each time and fixed rules and limits etc.

Itikar
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Joined: Mon Mar 05, 2018 6:45 am

Re: Some kind of stock based company ownership.

Post by Itikar » Tue Mar 26, 2019 10:17 am

Sounds pretty awesome to me. I have been looking in game for ways to invest credits in order to make them yield more so this would meet exactly my needs. As far as roleplaying is concerned I find civilian roles in SWG particularly fascinating, so I don't think a bank manager would be boring, in my humble opinion, especially in light of the future Underworld update.

citizen2608
Posts: 19
Joined: Tue Oct 10, 2017 6:28 pm

Re: Some kind of stock based company ownership.

Post by citizen2608 » Tue Mar 26, 2019 8:29 pm

I like the civilian roles more than the military or space-magician (sorry :P ) types too. Hence the username. I don't know how much demand there is for loans (or pawning) but it might be fun to try it out. There is good potential in the Underworld update too, I hadn't considered that.

Itikar
Posts: 16
Joined: Mon Mar 05, 2018 6:45 am

Re: Some kind of stock based company ownership.

Post by Itikar » Wed Mar 27, 2019 1:37 pm

Well, new characters are almost always in need for money and it's not uncommon to toss at new folks credits to help them out. I'd say a 10k credits bank transfer is a classic for new characters who remain stuck on Coruscant or other new planets with no way to get back.

When I do the above IC I generally roleplay it as a loan, even if I don't really plan to ask them anything back OOC. So it is not that loaning does not exist in this sense even if it's a tad marginal.

I would say that actually it would help a lot crafters who would like to craft without being forced to have a combat toon to finance their startup. Entertainers have the fame tree that lets them earn a bit of credits over time, but other than that right now the most effective way to earn credits for a new character is to do combat missions if they are able to play actively. Now I am digressing, but back to the main topic, yes, in my humble opinion, I believe there would be some room for a bank like the one described above.

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