Proposed Creation: EMC Stock Exchange? [move?]

My turn for a post

I'll use this as a placeholder and then edit the post.

Edit:

What Is A Share:
In order to have shares you must first have founded a company. This company must be at least somewhat successful, meaning that it has some sort of income.

A share is a portion of a company in which you own. Being a shareholder means that you will earn a portion of the companies income after it's expenses are paid, meaning that it's profit is split into dividends among the shareholders. One share is equal to 1% of the companies value. This can be changed, however, to have more shareholders. It is recommended to stick with 1 share equaling 1% of the company as any other percentage could cause confusion and/or corruption in the business.

How Shares Work:
Now that we know what a share is, we need to explain how shares work.

In order to understand how a share works you must first know that shares are not for every company, so think before you act.

So, you have a company. I'll use my company CakeCo Incorporated for an example. Say your company earns a good amount of income, perhaps 5,000 rupees this week. You have 100 shares. The entire 5,000 rupees would go to you as you have not sold or distributed the shares thus meaning they do not yet exist. Well maybe you need a little bit of fast cash to help start up your company. This is where shares come into play and are sold/distributed. It is highly recommended that before the distribution and selling of share, you keep half of them for yourself as owner of the company. So, for my company I would have 100 shares. Fifty of those shares will belong to me and the other 50 will be sold and distributed.

We will use this shareholder list for an example.

roblikecake - 50
333kirby - 10
JustinGuy - 20
IcecreamCow - 15
ArtemisV - 5

So, 100 shares total in which are distributed between 5 shareholders. This weeks earning are 5,000 rupees. Roblikescake would earn 50% of that giving him 2,500 rupees. 333kirby would get 10% giving him 500 rupees. JustinGuy would receive 20% giving him 1,000 rupees. IcecreamCow's shares are equal to 15% thus he will earn 750 rupees. Then ArtemisV would get 250 rupees from his 5 shares.

As you can see, all income from CakeCo Incorporated would be distributed among its shareholders.

Pricing Shares:
When setting a price for the initial selling of shares for your company you must think it through thoroughly. Let's say the company is a mall. You have a decent amount of stock and a decent amount of rupees, but have just recently opened. Being that the mall had just opened, its value is low due to the fact that it has not yet earned any income/profit to determine its actual worth.

So you would want to initially sell the shares for a fairly low price. For this example I will price them at 500 rupees each. You keep 50 shares for yourself and sell 50 shares. You will earn 25,000 rupees from the selling of your shares, giving you a little boost to hep out the mall. You cannot spend this money as it does not necessarily belong to you, it belongs to the company/mall.

Buying/Selling Shares:
After some time, if your mall/company becomes successful, the value of the shares will increase. This bring us to the next section.

When the value of the shares increase, if you are a shareholder you may sell your share(s) for a higher price then initially purchased to make some quick profit. This is how shares are distributed further than when originally created and sold. When selling shares from player to player you must inform the company owner so that he can update his shareholder list for the next pay period to be accurately distributed. It is also recommended that a screenshot of payment and documentation proving that the share has been sold be taken.

When buying a share, you should watch the companies income and try to buy the shares when the company is not making too much profit so that you can later sell for a higher price.

When selling a share, you should watch the companies income and try to buy the shares when the company is making a good amount of profit so that you can sell for a higher price than when initially bought.

TLR;
Shares are an investment to the possibility of a company becoming successful thus earning yourself income based on that success. Shares are not for every company, nor are owning shares for every person. Do some research on the company before buying a share in it. Do some research on how shares work to then determine if shares are a good idea for your company.

And before question arise upon this, yes it was intentional for the smiley face to be there.

This would make sense if the idea came from one of the shop owners. As none of them seem to have commented on this idea, I think it is safe to say this will not get off the ground unless you have stock to sell in your own company.

Also, playtpus this would not be a mod, it would be another plugin.

You'd need a public ledger for investors.

That could be put in a new tab similar to the Rupee history tab, except everyone sees the same thing.

I will reply in an hour and a half with better response to this post. But as for now, shop signs for shares are useless. Also you mentioned 500r a week for shares, that will never happen. Shares are a one time purchase, not a weekly expense. Shop signs have set prices until the owner of the sign removes and replaces the sign. Thus making shop signs useless and unnecessary for shares. Shares do not have set prices. The prices fluctuate with the supply and demand of that company's shares, the income of that company, and how well the company is doing.

Unfortunately, all I see is a massively convulted and complex way of trying to make more money of out something which is not constant nor controllable.

People leave, people go AFG for weeks or months at a time meaning shops, one or two or perhaps the entire listed market, could vanish overnight, and you're also relying on a degree of coding intergration into EMC.

I think this safely falls under the heading of 'banks and loans' as essentially, that's what shares are, and as such, are against EMC guidelines.

Besides, we already have a 'shares' system, it's called the Daily Rupee Bonus and is the daily dividend from the EMC government for shares held in the corporate face of the organisation. The money comes from shop purchases, vault usage and is capped at a fixed level with share increases being bought via Supporter Upgrades.

If you want to look at it like that.

Yes, while I think the idea is great and fun and might even make a fun plugin for a more adult used server, it wouldn't fit in with what we have here. Yes, we do have adults that might understand this, but the amount of younger people we have playing will most certainly not, but would take part because its a "cool thing to do". We will then have to deal with the tons and tons of "person stole my rupees/scammed me, etc.". Not saying you wouldn't be legit with it, but it would just cause more problems for our specific environment than we'd like to have to handle if it could be avoided.

You don't need coding for shares.
Shares are not against the EMC guidelines. Shares are investments to the possible success of a shop, thus nowhere near illegal.

That's the big problem with it right there, if not legitimacy.

Economy stuff in Minecraft is very limited as to what can actually be successful, and the way EMC runs it with a consumer / labour based economy works well. Anything more complex struggles to fit in with the limitations of the game.

I firmly believe that EMC still has the potential for this. The only way this can be done properly though is if a well known, respected player is the one selling and distributing the shares. Also this person must be approved by a 75% vote for the right to sell shares.

Yes, exactly. Justin and I firmly believe in the stay simple approach. It's why everything Google does is basically super successful. They keep it very clean/simple and not flashy. We've been basically using that like a guideline for what we do in EMC, and well... 30K and growing.

Being that I know quite a bit on this topic and have in my time become rather successful economy wise on EMC, I would like to take this on a test run once I open up my exchange. If it fails it fails and Shares are removed from EMC. If it is successful, well I proved my point.

Yeah. The more complicated you make it, the less people will understand it. And the stock market is pretty complicated.

I understand it enough to dumb it down, trust me.

Yeah, but it would add even more people complaining. Trust me, there are things I have dumbed down to the max and people never understood it...
Maybe I'm not dumb enough.

Just made my day! xD

Glad I could help.

Why not? Honestly the shop owner will sell for what they believe it is worth and also what others think it is worth. If they cannot come to an agreement, then the player doesn't buy the share. If the shop owner is a pushover and sells for 1r a share then too bad, he/she is a pushover. Its supposed to be entirely player managed, thats the way an economy is supposed to work.

EDIT: Unless you're a communist. But EMC is obviously a free market economy as there is no effort made to "rein in" the economy, it just is player managed.