HeadlessCowboy's Stock Market

[HeadlessCowboy]

I want to give feedback on this idea, but before I say anything about this I want to say I can be wrong and that I'm not a stock market genius, what will follow is my opinion.

I am against the idea of "this" particular stock market.

This stock market is completely based off of your server balance and that's pretty much my biggest reason why I am against it. Stock is usually based on something and it's usually based off things people want/value. Sometimes it's based off the success of a company sometimes it's based of gold, silver or something that is rare or has value to people. In any case it's based off what people value it to be. For people who buy shares that don't grant dividends the only way for them to make money is for other people to buy stalk for no reason other than you being rich(not including preferred stock). No one is going to buy common stock (or at least shouldn't because it's not a good idea) because the only thing they'd be buying is part ownership of your balance that they can't touch unless it grows. It's kinda a circular logic.

As for preferred stock there seems to be some intensive because you will make money off the dividends but because you (as a kinda figure or empty company) that only makes money buy selling itself is like inflating a balloon that will pop after awhile. No new stocks sold makes it a pyramids scheme. Eventually your stock market will fail and this is probably why Silas has in the past blocked these. It essentially is pyramid scheme that will only support people on the top until it collapses.

Another reason this idea is not viable as a stable stock market is because your balance determines the value of your stock. If you spend any money at all or happen to go broke for some reason or get fined by the guard/mods/admin/owner your stock prices will decrease. Peoples trust in you will fall causing them to sell and further decrease the value of your stock.

The only way this can work to some degree is if you don't touch your own balance and you add money to your own balance by a considerable amount. Otherwise this can be seen as w way for you to get rich especially if you start embezzling money.

I hope this give you and others perspective on how stock markets work and I'm open to any feedback about what I have just said.

Thanks for the feedback Dogtag. 

The number of stocks that I have said that is up for sale if they are all bought would give a profit to all that invested on day one of the tradings for common stock purchases.  Also, the more I earn before it goes live the more value the stocks have.  I am only planning on keeping the same amount of purchasable stocks unless I do a stock split to lower the costs of the stock.

I do like the idea of the faction idea, but I would have to put people that I trust in it so they just don't take the money.  This is the main reason why I wanted it to be on my account.  I also said in my post that I would notify if I make a purchase of ~25k or greater. 

Here are some stats from my excel sheet:

I have ownership of 2750 preferred stock and 9500 common stock (Yes, I have the money to buy these before opening day with plenty of money leftover).

Ownership is .507142857 for me and the rest of the investors' total ownership is .492857143.

With all of the stocks bought, here are the stats:

Me- Preferred Stock total = $245583.4071 and Common Stock total = $282793.0143 - TOTAL = $528376.4214

Everyone else- Preferred Stock total = $200931.8786 and Common Stock total = $312560.7 TOTAL = $513492.5786

With costs of each stock being:

Preferred: 89.30305714

Common: 29.76768571

This is of course with my current assets of 1066869.

I will always be earning money every day I log on, so the stocks more than likely will always go up even if it is just a little bit.  At the very lease, i would do on a day that I cannot really get on is vote and open up crates or sell crates

Also, if my balance does go down, the stock value will as well so people may want to buy then (Buy low, sell high).  I do agree that it would be bad for current investors but over time it can be earned back by doing money making stuff on the server.  It would take about a month or less to get back to 1 million if all of it was spent today