Could you please tell me why it is so imortant to invest in stocks only with your holding and not with your subsidiary? Maybe i missunderstand there something so i am just curious…
Well that’s basically what a holding is. If you invest money with your subsidiary then part of that funds goes to others.
http://en.wikipedia…Holding_company
BenjaminA330: Let me ask you a question - what do you think a holding company is for?
Looks like we see this a little different. First of all … This is a GAME and not real Life. It is a Simulation of running an airline and not a Stockmarket game. Having said so the Term Holding for me comes more from the Financial Sector. Large Investment Companies that do nothing else then buy and sell shares … as noted in the wikipedia. Maybe I am wrong but I can not Recall any Large Business (in the Airline industie) that has first a holding and then founded an airline nor is there a Holding that is buying shares from other Airlines. A holding uses a wide Veriaty of investment to distribude their Money they Invest. Having said so you also have to bear in mind that this game was done by German developers and (this is my opinion) i think the gameplan structure etc was first done in German and then translated into English. Since we are normally not native English speakers verbal misinterpretation is a possibillity.
In the game here for me the “Holding” is the overall roof where you get your starting money from. The Rooftop of your enterprise. From that you start your first Enterprise call it Airline A. With that you start getting an Income by Flying Passengers and/or Cargo. As we know when you reach 20 mio Shareholders Equity you can start and by shares from the stockmarket. On Maigs the first airlines made that in around 3 weeks. Now comes the point where some are claiming that if you buy shares with your Airline A others are benefiting from these Income since you will pay a dividend provided that your Airline A subscribed sucessfully on the stockmarked as well. That is true but we are talking about how much? Why do we want to go for a successful IPO of our Airline A in the first place? Because we want to get money … ideally in the beginning this might be 50% of the Value of the company … maybe 5 or 6 Million. If you invest in your company and increasing your fleet especially in the beginning at Meigs and use Standard Price plus x% you will make much more money in this 3 weeks then you will get with an IPO. This is whats happening at the Moment on Meigs … everybody is expending the fleet and not giving money in IPOs even if some Companies can already spent money in IPO’s. At a later stage if I do understand it if you have lets say 50 mio cash in your account you can setup Enterprise 2 … call it if you want Holding a with a starting balance of 40mio. Since you need 20mio to subscribe to IPOs you can transfer (buy and sell) the stocks you have already bought for example from your Airline A to the holding and invest with the rest and the Profit that the Holding doing then in other IPO’s. This is an open Ended Game … you get no points for having the biggest Airline in 6 weeks. Now it goes a little slower of building up Cash, but you can concentrade on the main Point of this Game … Running an Airline!.
Now we come to the Last Point I have in Mind …If you have the holding only for the Purpose of Investing in stocks like you said. What are you doing with that money? If you only pile it up like it should be done in a Holding then I personally don’t see an advantage and this is by all means not what has happend in the Past. With that Money players where buying Terminals, Aircrafts, getting loans and buying more aircrafts. So they are using that Money also in a way it should not be used if you use the pure meaning of the word holding.
So this is my own way of interpreting this but in my Opinion the word "Holding" is maybe missleading and I guess most of us have another explanation and may disagree with my words, but thats ok.
Benjamin