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Mafia Returns Stock Exchange Started by: Vienna on Sep 26, '08 12:57
This is something that I've done in the past with Dick_Gozinya and again with Sprozza on a user level, and both times were pretty successful. I think that coding in a stock exchange into the game to provide business owners in the business district financial compensation for their hard work would be a great addition to the game.


Users would purchase 'stock' in a business that they feel will go places. More posts = an increase in stock price. Stagnancy = decrease in stock price.


Instead of reinventing the wheel, I'll repost what I posted the disclaimer to show how it worked:

This is our public disclosure, and how the MafiaReturns Stock Exchange works.


From here on out the MafiaReturns Stock Exchange will be referred to as the MRSE and the Brutal Phoenix Brokerage Firm will be referred to as THE FIRM.


(Warning, this is written OOC in order to eschew obfuscation.)


LISTINGS


The companies traded on the market will be actual businesses in game that the business owners choose to list publicly and open for trade. In order to list a business, all the business owner must do is contact a broker of the firm with their intent to enter the market. Simple as that. There are no buy in or listing fees whatsoever for the business owner.


BUYING & SELLING


Each listed company has a limited number of shares available for purchase at any time. The share limits are based on the number of replies to the business' thread and are detailed as follows:


Level One: 0 - 25 replies: 25 shares

Level Two: 26 - 50 replies: 50 shares

Level Three: 51- 75 replies: 75 shares

Level Four: 75 - 100 replies: 100 shares


No single person may own more than 50% of the shares available for any one business. Once a company is listed, shares may be purchased freely until there are no more shares available for purchase. Then purchases can only be made if a current shareholder wishes to sell or if the thread has gained enough replies to be considered in the next highest level. Purchased shares can only be sold if there is a buyer willing to buy even if all of the business' shares are not purchased. Shares will be sold at the current market price. No exceptions. Shares are non-transferable. All purchases and sales must go through THE FIRM. No exceptions.


Share prices are based on the success and popularity of the thread and how many replies it receives. Note... Spamming or otherwise posting replies in an establishment that offer no qualitative complement to the thread will NOT increase the share price and the owner of the bar or shareholders responsible will forfeit all shares and possible listing of the company.


Conversely, threads that go public and become inactive will see a decline in their share value.


THE FIRM adds a 5% fee to all share purchases and deducts 5% from all share sales to cover the cost of their business and for providing this service. The owner of the business listed receives 10% of the amount remaining from the sale of that business' shares AFTER the 5% brokerage fee has been taken.


(SHAREHOLDER A wants to sell his shares to BUYER B. The current price of the shares equal $100,000. THE FIRM takes $5,000 as their fee and from the remaining $95,000, the business owner gets $9,500. SHAREHOLDER A then receives what remains, or in this case $85,000. BUYER B then buys SHAREHOLDER A's former shares at the price of $100,000 plus THE FIRM's 5% brokerage fee, or in this case $105,000.)


If a business owner dies, his business still remains publicly listed and shares can still be traded. HOWEVER, the business owner's son cannot claim ownership of the 10% profit from the sale of any shares related to the business in question. The 10% will remain with THE FIRM to cover market instability and any unforeseen expenses on behalf of the firm in the conduct of their business. Conversely, if a shareholder dies, his shares become property of the firm and the shareholder's son is not entitled to a refund.


THE FIRM deals strictly as THE brokers of the MRSE and is in no way, shape or form a life insurance company or safe deposit holding corporation.


THE BENEFIT


The purpose of the MRSE is to give business owners in game an actual benefit for the hard work they do maintaining their threads. Shareholders also have the opportunity to make money provided the business does well and remains active. Therefore, it is in the shareholder's best interest to provide quality and repeat patronage to the business or businesses of which they currently own shares.


This is a text-based role-playing game. Those players who strive to preserve and promote the role-playing aspect deserve to be rewarded for their outstanding efforts.


THE MATH


Here's how the MRSE and THE FIRM operates mathematically:


Note: All numbers are rounded to the dollar.


Initial Share Price


The owner of COMPANY A decides to list his company on the MRSE. COMPANY A has 20 replies. This makes COMPANY A a Level One company. Share prices are calculated using the following formula on the listing day:


$.15(Replies at listing x 1000)

In this case $.15(20000) = $3000.


This amount is the initial share price, and will be referred to as the ISP from this point forward.


The price for shareholders on the listing day is $3000 a share with a 5% mark up for the broker for a total price to buy of $3150/share.


Share Price


Share prices from the listing day forward are calculated using the following formula:


ISP + $100[(Actual Replies - Listing Day Replies) - Days Since Listing Day]


Three days after the listing, COMPANY A has 23 replies.

$3000 + $100[(23 - 20) - 3] = $3000 + $100(0) = $3000

The price for shareholders is now $3000 a share with a 5% mark up for the broker for a total price to buy of $3150/share.


Five days after the buy in, COMPANY A still only has 23 replies.

$3000 + $100[(23 - 20) - 5] = $3000 + $100(-2) = $2800

The price for shareholders is now $2800 a share with a 5% mark up for the broker for a total price to buy of $2940/share.


Seven days after the listing, COMPANY A has 32 replies. They are now a Level Two company, but the ISP and the formula stay the same.

$3000 + $100[(32 - 20) -7] = $3000 + $100(5) = $3500

The price for shareholders is now $3500 a share with a 5% mark up for the broker for a total price to buy of $3675/share.


The above scenario demonstrates how beneficial it is for listed companies to remain very active.

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Obviously variations are necessary. The game code itself will act as the broker, but the math for share prices will remain the same (or could remain the same).
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Congrats, you just made my head hurt.


I like the idea though, I really do.
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After looking over this a few times, I can fully say I like this idea.. A new way to generate cash, a new way to encourage activity, creativeness, and originality. This would be a nice addition to the game.
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I think this is a good idea, but keep cost and profit low because people will get too rich and it can ruin the game.
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I love this idea, it would need a lot of thought put into it if it was to make it into the game but the idea is fantastic.


Cant wait to see what the admins think. Maybe its some thing that could be put into V2?
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roflmao i agree with armani.....FORGET ABOUT IT !
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Wow... was kind of hoping more than 4 people were capable of forming an opinion of the 350 of you that play on a daily basis :)
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Lol i dont fully understand the concept, but from what i get from it, it sounds excellent :D
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I love this idea!riliantly!I just love having stock!its best drug!
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While this would be some work, I absolutely love the idea. It gives money back to those who work on making the bar districts better, which is something that is, frankly, necessary.
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Sounds good to me.
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LOL


Same as Armani

But it would be a good idea to make the good bar owners profit from there bars...


Maybe that could be done easier as this but its a good idea
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Bumping, would love to see the stock exchange make a come back!
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You’re aware that you’re spamming the forums aren’t you?
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Spamming the forums Hawk? Sorry I went back and found suggestions well written by other players in the past, who outlined additions to the game in a much better format than I was prepared to do myself. But yeah sure dude totally spamming.
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Love the idea, always thought some cash should be involved in the business district. 

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+1 The game need some type of stock market brought back to the game. Should have never been removed.

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Not a fan we're mobsters not stockbrokers.

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An option and shorting market would be a great addition too!

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