really, that sounds like the opposite of a stock market. Stock markets are a vehicle for companies to raise cash by selling shares of ownership. It is really designed for the smaller companies to gather capital to expand instead of getting loans, the only reason large-cap companies would go public, is if they are desperately short of cash (either overextended or the business is faulty and they need the capital to reinvigorate the company). It would make more since to set the bar lower on who can go public, perhaps companies with assets more than $1 billion.
Investors will not make money on such a large company, since the ability for that company to expand will be weaker than that of a smaller company, or worse the larger company is more likely to downsize due to a recession, which would kill shareholders investments. I don't want to sound like a whiner, but if that's what Virtonomics plans for a stock market, there might as well not be one.
I understand that the Admins might fear that newer players raising too much capital too early will deter them from playing long-term. However small companies buying "blue-chips" will make little or no money on stock appreciation, therefore they will not spend the cash on stocks from companies that expand poorly compared to $1b>$10b companies, so the stock market feature will be purely novelty and will have terrible participation from players if they see little gain. (Basically players would rather open a retail store and make a couple of million in a few weeks, than buy stocks in a company that will hardly appreciate) In RL people only buy "blue-chips" for stability and security reasons, they never buy them for capital appreciation.
So what I propose the admins should do, is either lower the restrictions to companies issuing stocks to at least $1b>$10b or if the Admins want to only allow $100b companies to issue securities, get rid of the stock market and create a bond market.
There large-cap companies can issue bonds, and small players are guaranteed at least a stable income. Therefore with a bond market, small-cap players will be more likely to purchase bonds rather than stock.
I don't mean to dictate, but I see a lot of potential with the stock market and too see it restricted to only large-cap companies would just make the feature pointless.
Also if you are creating a stock market/bond market, will we see a Capital Gains Tax?
Thanks |
