5.1 Stocks

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All companies in Tycoon Online start out with 50 shares. During the game, these shares may be traded on the stock market. By trading wisely, you can make nice profits and climb the stock ranking (S-ranking), which is won by the player making the best stock purchases throughout each round.

When buying a share in a company, you earn the right to a small part of the company's profits every week. You can also make money by selling the share when it has increased in value. Owning shares does not give you influence in a company, and if the company goes bankrupt, the shares you own in it become worthless.

Buying stocks

Whenever a player puts one of his or her shares for sale, it appears on the stock market. You can find it by clicking "Shares" (under "The stock exchange") and then "Buy shares". You may buy 5 shares every day, but only one share per company. You can own a maximum of 5 shares in each company. There is no upper limit on how many shares total you can own.

Some shares do not appear on the list of stocks for sale. These are shares you cannot afford, shares you have already bought one of on the same day, and shares in companies that you own the maximum amount of shares in (5 shares).

When purchasing a share, you will put in an order that will be processed during the next 10 minutes. Unless someone bought the share before you, you have ordered too many shares, or you somehow could not afford the share, ownership of the share bought is transferred to you upon processing of the order. If someone else has ordered the same share before you, you will receive another share of the same kind if more than one is available. If not, your money will simply be refunded.

When purchasing a share of which more than one have been put on the market, you will automatically receive the share in that company that has been for sale for the longest amount of time, not necessarily the specific share you clicked to purchase. This is to make share trading, agreeing to purchase each others' shares to gain profits and/or stock points, harder. Share trading is not allowed in Tycoon Online.

Selling stocks

To sell a share, go to your "Shares" page. Click the share or shares you want to sell, once you have selected all you want to sell choose "Put out for sale". Once you do this, the shares will appear on the list of stocks for sale, and you will not be able to withdraw the share before 10 minutes have passed. If someone buys your share before you are able to withdraw it, the share is sold, and its ownership transferred to the buyer.

The money you earn from selling a share equals the value of the share at the time it is sold - not its value when it is put out for sale.

When you put a share for sale, it takes 60-120 minutes before it appears on the stock market and is available for purchase. This is to prevent players from "trading" lucrative shares with each other.

You get stock points for selling your shares, see 3.4 Stock points.

The stockpile

Whenever you make money from selling goods to the bank, selling goods in shops, or selling services in an office, 10% of your income is given to your shareholders. The money taken is pooled up and divided among your shareholders every Sunday. To see how much money is currently pooled in a company's stockpile, click one of its shares and see under "Company information".

Companies only increase their stockpiles by selling services or goods that they have produced themselves. If a company sells goods that it has bought earlier on the market, 10% of the money earned is still taken, but it does not actually increase the stockpile. This is to prevent players from selling goods they have not produced themselves to create unnaturally high dividend payouts.

Dividends

Dividends are paid to all shareholders from a company's stockpile at 06:00 every Sunday. You do not receive a dividend on your own company's shares. This is to motivate players to sell their shares at some time during a round.

While you can own as many shares as you would like, you only receive dividends from the 50 top valued shares that you own. Your own company's shares count when determining what shares you receive dividends from.

There is a 20% tax on dividends received. This goes straight to the bank.

Up to 50,000 iKr of unpaid dividends are left in the stockpile and carry over to the following week.

To see how much dividend your own company has paid, click the "Dividends" link on your "Shares" page.

A company has 15 000 iKr in the stockpile. You own 2 stocks from that company.
How much dividend do you receive?
15 000 / 50 = 300 iKr per stock. 2 x 300 = 600 iKr total.
There is a 20% tax on all dividend payments. How much will this be?
600 iKr x 0.2 = 120 iKr total.
When the tax has been paid, how much money do you receive?
600 iKr - 120 iKr = 480 iKr. You receive 480 iKr's worth of dividend.

Stock price

The price of a stock changes every day. The first week after a company has been founded, its stock is worth 1/50 of the company's company value. After this, it rises by 1% of a company's increase to its company value. In addition, it gains a percentage increase in value in relation to your climb or fall in C-ranking, subject to a maximum of +/-25% per day.

Below follow some examples to better illustrate how the stock values change:

Your company's value amounts to 8 000 iKr and your company is less than a week old.
What is the value of your company's shares?
8 000 / 50 = 160 iKr.

Your company is older than 1 week and increases its company value by 7 000 iKr during one day. Its share rate before the increase was 2 500 iKr.
How much will your company's shares increase in value?
7 000 x 0.01 = 70 iKr. During the same day, you climbed from C-Rank 500 to C-Rank 480.
How does this affect the share rate?
(500 - 480) / 500 = 20/500 = 4% climb in C-Rank 2 500 x 0.04 = 100 iKr.
What is then the new value of your company's shares?
2 500 + 70 + 100 = 2 670 iKr.

Hint: When buying shares, consider the dividend you receive from them more than their price. A share being expensive does not mean it will give good dividend.

Hint: When considering buying a share, check the company's risk class by entering the company's profile. A risk class of 1 means that the owner of the company is regularly online to handle his enterprise. A risk class of more than 1 means the owner is less regularly checking in on his company, and this often results in money losses and bankruptcy.
Risk class 2 begins at 2 days
Risk class 3 begins at 4 days
Risk class 4 begins at 7 days
Risk class 5 begins at 10 days

Hint: You gain nothing from holding on to your shares when a round ends. Make sure to sell them at some time during the round. It is wise to sell only a few at a time because the value of your shares will increase with time.

Hint: If your share rate is high, and you have not sold any of your company's shares, you will most likely not receive much dividend from other shares you own because your own shares count toward the 50 highest valued shares that gain you dividend. Holding on to your shares when they have risen in value cripples your chances at climbing the share ranking.


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