Buying Stocks Part II (inter-enterprise stock purchases)

Billiam · July 30, 2011, 2:53am

I have one holding with two enterprises. If I do an IPO with one enterprise, can the second enterprise buy stocks from the first one? I know this is forbidden if you have two holdings and buy stocks between them, but is it a problem inside one holding?

plotz · July 30, 2011, 9:55am

That should also be impossible, as practically this distorts the hierarchy within your holding.

Billiam · July 30, 2011, 12:44pm

I haven’t actually tried this… I was curious though. In reality companies do these sort of things so I thought it might be possible.

chillhunter · July 30, 2011, 10:04pm

yes, it’s possible, the second can buy from the first, ONLY NOT if the first have already stocks from the second ,

so crossover shares are not possible

@plotz

why should it not be possible - i’m free to organize my companies hierarchy as i like

Billiam · August 2, 2011, 2:28pm

Thanks for the answer. Is it possible for an enterprise to underwrite some of its own shares during the IPO?

chillhunter · August 2, 2011, 2:38pm

no, it’s not possible

an enterprise can not sign and / or buy (later) stocks from itself

Airlinesguyrulz · September 18, 2011, 7:25am

In the real world it is possible. Air Berlin bought 10% of TUIfly and TUIfly bought 10% of Air Berlin.

sk · September 18, 2011, 8:46am

Yes but not in AirlineSim due to possible problems in automatic liquidation.