Stock
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Stormhawk
- Closed Account
- Posts: 170
- Joined: Tue Sep 04, 2007 6:31 pm
- Location: Mining an Asteroid Belt
Wouldn't it be cool if you could buy stock in companies? Like early on you can by stock in NAMI and then Makayev and eventually Tiakon Ventures. They would pay you random amounts of money every ten minutes or so.
This is our game. And George is our hero.
That's an exploit just waiting to happen.
Step 1. Invest everything you have after Eridani (1000 - 2000 creds)
Assuming interest is 1% that's 10 -20 creds every 10 mins.
Step 2. Press 'A' and sit on top of a planet until you're nearly our of fuel.
Step 3. Refuel
Step 4. Reinvest
Step 5. Repeat steps 2-5 until you can buy everything.
Step 6. Stop playing because it's not fun anymore.
There's not even a bank in the know galaxy, I doubt stocks would be buyable.
Now if the stocks gave you a discount rather than pay our dividends, that would be a totally different story.
Step 1. Invest everything you have after Eridani (1000 - 2000 creds)
Assuming interest is 1% that's 10 -20 creds every 10 mins.
Step 2. Press 'A' and sit on top of a planet until you're nearly our of fuel.
Step 3. Refuel
Step 4. Reinvest
Step 5. Repeat steps 2-5 until you can buy everything.
Step 6. Stop playing because it's not fun anymore.
There's not even a bank in the know galaxy, I doubt stocks would be buyable.
Now if the stocks gave you a discount rather than pay our dividends, that would be a totally different story.
Coming soon: The Syrtian War adventure mod!
A Turret defense genre mod exploring the worst era in Earth's history.
Can you defend the Earth from the Syrtian invaders?
Stay tuned for updates!
A Turret defense genre mod exploring the worst era in Earth's history.
Can you defend the Earth from the Syrtian invaders?
Stay tuned for updates!
Oh well, banks would be pretty cool too.
<soapbox>
Properly financial instruments that yeild returns only at the end of their life are bonds. These are bought from a company or government for less than face value, traded over their lifetime for a value in between their initial price and their face value, and the company or government must redeem them for face value at the end of a specified timeframe. Bondholders normaly recieve priority in bankrupcy liquidation.
Stocks used to pay something called dividends. Some reputable companies still do. This is rarer now because of flaws in the U.S. tax code and possibly the tax codes of other nations. When a company makes money they pay taxes. When they pay dividends they are taxed again as income. In most modern stocks the profit that would have been paid as dividends is all reinvested. The stockholder gets nothing. The stockholder never gets anything. The stock may change hands and appreciate in value, but the stockholder never actually sees a penny unless he can foist the stock onto someone else, who never sees a penny either. Previously companies would start paying dividends once they were established, but this no longer happens in most cases.
Stocks are unsecured so the only real value they have is the dividends they pay. Any stock that doesn't pay dividends is no more substantial than a derivative unless there is an expectation that the company will begin paying derivatives in the near future. Non-dividend-paying stocks are valuable only if the company is growing in size. A dividend paying stock is valuable even if a company is fixed in size. Because the quest for growth produces dangerously shortsighted behavior I expect dividends to be required by law in most circumstances in the not too distant future. Certainly by the time in which Transcendence is set.
</soapbox>
Properly financial instruments that yeild returns only at the end of their life are bonds. These are bought from a company or government for less than face value, traded over their lifetime for a value in between their initial price and their face value, and the company or government must redeem them for face value at the end of a specified timeframe. Bondholders normaly recieve priority in bankrupcy liquidation.
Stocks used to pay something called dividends. Some reputable companies still do. This is rarer now because of flaws in the U.S. tax code and possibly the tax codes of other nations. When a company makes money they pay taxes. When they pay dividends they are taxed again as income. In most modern stocks the profit that would have been paid as dividends is all reinvested. The stockholder gets nothing. The stockholder never gets anything. The stock may change hands and appreciate in value, but the stockholder never actually sees a penny unless he can foist the stock onto someone else, who never sees a penny either. Previously companies would start paying dividends once they were established, but this no longer happens in most cases.
Stocks are unsecured so the only real value they have is the dividends they pay. Any stock that doesn't pay dividends is no more substantial than a derivative unless there is an expectation that the company will begin paying derivatives in the near future. Non-dividend-paying stocks are valuable only if the company is growing in size. A dividend paying stock is valuable even if a company is fixed in size. Because the quest for growth produces dangerously shortsighted behavior I expect dividends to be required by law in most circumstances in the not too distant future. Certainly by the time in which Transcendence is set.
</soapbox>