| | | Idea: CPP Stock Exchange! | |
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Neo Adept


Posts: 1982 Registration date: 2008-01-26
 | Subject: Idea: CPP Stock Exchange! January 3rd 2010, 1:32 pm | |
| Welcome to my Idea for a CPP Stock Exchange! Part 1: FAQ (The Bulk of the thread) Q:What is it?
| Spoiler: | | | A: Just like the Real Stock Market, it is a system of investments, buying and selling, and comes with both risks and rewards. It uses coins. Instead of companies, one may invest in clans. |
Q:How does it work?
| Spoiler: | | | A: For this, I will provide an example. Our players will be Penguin A, Broker A, Penguin B, Broker B, and Company X. Let's say Penguin A sees that a share of Company X is 3.14 coins, down from 3.19 yesterday. He figures that this is the cheapest it will get, and he is saving up for a custom rank. So he calls up his broker, Broker A, to buy 100 shares of Company X. Broker A says that will cost 314 Coins. Penguin A says okay. Meanwhile, on the other side of the world, Penguin B needs some extra coins because an old friend came on and reminded him that he owed him 314 coins. He remembers his 100 shares of Company X, and calls his Broker, Broker B, to sell them all. Broker B says fine, and sells the 100 Shares, and gives the resulting 314 Coins to Penguin B. So Penguin A is happy now because he has his 100 Shares, and Penguin B is happy because he has 314 coins, and Company X is happy because more attention has been given to its stock. |
Q:Are there any rules or restrictions?
| Spoiler: | | | A: Yes. To Participate in the Exchange, one must have reached 100 posts. However, they need a broker. To be a broker, you must have 1200 posts. You may or may not charge a fee for your services. All clans may have a stock. |
Q:How does the price move around?
| Spoiler: | | | A: Well, lets say Penguin A had really wanted to get those shares. He can ask any price for the stock. So lets say he asked for a price of 3.2 coins per share for 100 shares. Penguin B would then be able to sell 100 shares to Penguin A for 320 Coins instead of 314. Thus, the price per share has gone up to 3.2. For the price to move down, for example, if Penguin B only needed 280 coins but needed them very soon, he could offer a price of 2.8 coins per share. If Penguin A buys it, the price per share moves down to 2.8 coins. |
So, do you like it? Post all comments/complaints/complements/questions below. ~Neo |
|  | | Bronze Vanguard


Posts: 4730 Registration date: 2009-05-24
 | Subject: Re: Idea: CPP Stock Exchange! January 3rd 2010, 1:52 pm | |
| Well, there would be limited choice of investments or stocks so CPP stock ex would be very different from real life, but if you kept the idea basic then you could go far. And you wouldn't need to be officially the stock ex for the forum as you could run it 100% yourself and then anyone who wants to be listed would come to you. |
|  | | Neo Adept


Posts: 1982 Registration date: 2008-01-26
 | Subject: Re: Idea: CPP Stock Exchange! January 3rd 2010, 2:09 pm | |
| It would need to be forum-based for coins though. Thanks for the CnC, mucho appreciado! |
|  | | Vixx Wanderer


Posts: 121 Registration date: 2010-01-02
 | Subject: Re: Idea: CPP Stock Exchange! January 3rd 2010, 2:13 pm | |
| I like the idea, it does sound a bit like Neopets stock exchange. Shouldn't the price change depending on the clan's activity/popularity rather than sheer randomness? I still don't completely understand how the prices go up and down, so bear with me. :P |
|  | | Neo Adept


Posts: 1982 Registration date: 2008-01-26
 | Subject: Re: Idea: CPP Stock Exchange! January 3rd 2010, 3:04 pm | |
| Price goes up/down by what people want to pay or be payed. I.E. If Penguin A wants to buy a stock for 4 coins instead of 3 per share, and Penguin B decides to sell his stock for 4 coins, then the Price goes up. If Penguin A wishes to buy a stock for 2 Coins instead of 3 because he's cheap, and Penguin B is really strapped for cash so he takes it, the price goes down. |
|  | | Digit


Posts: 2259 Registration date: 2009-02-12
 | Subject: Re: Idea: CPP Stock Exchange! January 3rd 2010, 7:15 pm | |
| I see a few problems in this like most of us on how young we are lol, don't seem to understand the fundamentals the shares and investmenst. I don't totally understand shares yet either and like most people would at our age, jk. And maybe some clans don't want to do this at all, then that would be a problem, but I can see what Neo is getting at and I think I can agree with a few of the terms. |
|  | | jjkanes Hero for Hire


Posts: 1343 Registration date: 2009-04-01
 | Subject: Re: Idea: CPP Stock Exchange! January 3rd 2010, 7:48 pm | |
| UMmmm i dont really get this idea the examples are just confusing meii really... Do we all have to like have this idea and going into stock markets and stuf and risk or coins and that? |
|  | | Vixx Wanderer


Posts: 121 Registration date: 2010-01-02
 | Subject: Re: Idea: CPP Stock Exchange! January 4th 2010, 12:10 pm | |
| @Neo: Oh, I see. So the price is set by the buyers/sellers themselves. | jjkanes wrote: | | UMmmm i dont really get this idea the examples are just confusing meii really... Do we all have to like have this idea and going into stock markets and stuf and risk or coins and that? |
No, you're not obliged to contribute in this, but it should be fun. Here, I'll try to simplify it:
Day 1: Person A logs on CPP and checks the share prices for clans, just because he's that bored. Now, let's pretend this is what the pricing board reads: Clan 1 are selling their shares for 2 coins per share. Clan 2 are selling their shares for 4 coins per share. Person A wonders if he should buy 30 shares from Clan 1,since 2 coins per share is probably the cheapest price they're ever going to reach, he calls his broker (the person who handles his stock trade) and tells him to go ahead and buy the shares for him. Person A pays 60 coins to Clan 1 for 30 of their shares - although, the broker is probably going to charge for selling/buying those shares for Person A, but let's presume he's giving away his service for free for the sake of simplicity.
Day 2: Person B logs on, he wants to get his username changed, but he can't do that, can he? No, because he doesn't have enough coins. Person B checks the pricing board: Clan 1 are selling their shares for 3 coin per share. Clan 2 are selling their shares for 5 coins per share. That means the prices have gone up while it's only been a day; This basically shouts "Profit" to whoever bought shares from either clans when they were cheaper. Person B decides to buy 30 shares from Clan 1, he calls his broker and asks him to buy 30 shares from Clan 1 for him. The broker looks around and sees that Person A - the person who bought 30 shares from Clan 1 for 2 coins per share yesterday - is itching to sell his 30 shares since the prices are higher, which means Person A is making a profit by 1 coin per share. Person B gets his 30 shares by paying 90 coins to Person A, therefore, Person A gains a 30 coins profit (Person A bought his shares for 60 coins and sold them to Person B for 90, get it?).
I have a question, though. Are people buying shares from the company itself or from each other? And if they're buying the shares from each other, how does the company make any profit? |
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