I have a holding and two subsidiary companies, A and B. A holds 12,000 shares in B which were bought after a third party investor left the game. My holding makes good money from dividends of A and small profit from B.
So, first, is it cheating to sell the shares A holds in B back to the holding? At the market rate, no manipulation.
Second, I obviously know the peaks and troughs of my companies business weeks. Is it cheating to buy the stock at the weekly low just to sell it back at the weekly high? Again at the market value.
As far as I can see its a feasible way of transferring funds from a holding to a subsidiary
Ok i kind of understand what you are trying here. I don’t see selling shares within one holding as cheating because only one holding (including the subsidaries) is involved.
And regards to the market rates, it is perfectly legitamate to buy a share at its lowest price and sell it at the highest possible price. However, it is upto the admin team to decide whether, repeating buy-low-sell-high in order to give advantage to your smaller subsidaries is allowed.
Hi,
in my eyes the stock market is the fifth weel on the AS wagon. It adds realism to the game, but due to cheating there are several restrictions that make the whole thing quite unrealistic…
It should be possible to move money between holding and subsidiary. If a real holding is sitting on too much cash, and it’s subsidiary can use extra capital, it will invest in it’s own subsidiary. Period. I don’t see how this could be considered as cheating. If the subsidiary is 100% owned by the holding, it is moving money from your left pocket to your right pocket. If the subsidiary has gone public, you give a little present to your share holders: if you add 1 million to the equity of your subsidiary, the value of the shares will go up a bit. Just like the value of your shares goes up if you make a profit of 1 million.
The stock market allows you to buy/sell shares up to 10% under or above the real value. In my eyes that means it is even allowed to sell these shares to your holding for 10% above the real value.
Moving money in the other direction, from subsidiary to holding, could be seen as cheating if the subsidiary is public: if you move 1 million to your holding, your subsidiary would be worth less money and the value of the shares would go down a bit. That would be like stealing from your share holders.
Some time ago I have created an investment company to learn the in’s and out’s of the stock market. The only cheating that I see - and yet is perfectly within the rules - happens when a subsidiary goes public. If I am your friend, and your airline goes public, I can create a holding and invest 10 million in your airline. The next day I delete my holding, the shares go to AS and your airline keeps the 10 million. This seems a bit unfair to me. But nobody has complained about this on the forum, so apparently it is not a (big) problem. It may help if a company has to be at least two weeks old before it can buy shares, just like a company has to be two weeks old before it can go public.
If your holding also operates as an airline, you can move money between holding and subsidiary (in both directions) if one buys planes and leases them to the other. This is also within the rules and not unfair towards other players.
Jan
I used to invest in different companies, and after a few weeks of holding their shares - it is ENTIRELY POSSIBLE to judge when their week closes and roughly how much the weekend closing reduces their share price by. I wouldnt consider that cheating.
Well I have to ask because in effect I’m just buying from and selling to myself which in terms of making money seems like it could be a bit of a grey area. As common consensus seem to agree its ok however I’ll go ahead with it.