Virtual Stock Exchange discussion

Here is my idea behind implementing a real working stock exchange within EU.

Entropia Holdings Corp. Virtual Stock Exchange​

This virtual stock exchange would originate initially in the Entropia Universe, a Virtual Universe owned and operated by Mindark PE AB based in Sweden. The concept could be ultilized in any virtual universe that enables it’s userbase to purchase land or property using any virtual currency. The explanations herein will be ultilizing the Entropia Universe for the sake of simplicity.

As a citizen of the Entropia Universe (EU) community I am establishing a virtual company entitled Entropia Holdings Corp. This company is an investment club whereby a community of investors will pool their virtual currency to purchase what is called a Land Area within the EU. This land area has the potential for large daily recurring revenue as well as overall value increases. The values of these Land Areas are dependent upon variables such as how often they are hunted on, location, the types of virtual animals installed into these properties and overall awareness of the benefits of said property.

As an investor of Entropia Holdings Corp, the virtual company that maintains the investments of it’s collective group, one can purchase virtual shares of stock in the company. The currency collected from the sale of these shares are then used to acquire further assets within the Universe. As the value of these purchased properties increase, as will the value of the shares of stock.

The Virtual Stock Exchange will take place by means of Terminals throughout the EU. These terminals will be the tool used to purchase and or sell shares of stock based on the approximate value of each share and the desired selling price of the shares owner. These shares of stock are backed by the value of the assets of Entropia Holdings Corp or other controlling enitity and will fluctuate like any other company in the real world based on the aforementioned variables but will increase in value more consistently than they will decrease based on the exponential growth of funds obtained through the recrurring revenue of the properties initially purchased with the funds which is the saved and used to make further proporty purchases.

Example: I form a company and issue 500,000 deeds/shares of stock at 1 unit of currency each. I then take the investment funds and purchase a Land Area at the price of 300,000 units of currency and use the remaining units of currency to install animals for hunting, maintenance etc. The property will then generate a recurring stream of revenue averaging 300 units of currency per day which is then saved and used to purchase a second Land Area. If the first Land Area is valued at 500,000 units of currency after being well established, the additional assets from the second Land Area will then cause the original shares of stock to increase in value by as much as 100% all of which is backed by the current market value of the Land Areas owned by the opertating company.

The exact value of each share of stock will be determined by monthly reports on the progress of these Land Areas and their respective earnings.

To ulitize a Stock Exchange Terminal, which can be located in cities or business disctricts throughout the EU as well as privately owned Banks, one must simply click on the terminal to operate it. To sell a share of stock, you simply place the deeds for your number of shares of stock into the terminal and select your desired sale price which can be higher or lower than the determined value at that time of the month based on how fast or slow you wish to sell those shares. To make a trade, whether it be 1 share or 1,000 shares of said stock, the seller will be charged a transaction fee. This feel will go to the owners/operators of the Universe/Virtual World. In EU’s case, the fee would go to Mindark or at least a percentage thereof. The remainder of said fee may go to the operator of the private banking facility the terminal is housed in, much like that of a real world ATM Machine.

Upon purchase of the share/shares of stock, there is also a transaction fee to be paid on behalf of the purchaser with the same breakup of fees distributed amongst the terminal holder and the Universe’ operator.

To establish shares of stock in a virtual company, the executor or founder of the investment company must contact the Universe’ operator, in this case Mindark and apply for an investment club license. In this process the founder of the new investment entitity must demonstrate a number of initial investors who have committed to investments into the new company. Once approved by Mindark, the company will be issued a number of shares of stock deeds to then be sold to their investors.

The number of shares issued will be based on 500,000 units of virtual currency, or in the case of Entropia Universe 500,000 PED’s which is the currency of EU. Each share of stock is worth 1 PED.

At such a time that a single deed for a share of stock is valued at more than what is commonly acceptable for an individual to purchase, that share of stock could be split into multiple shares of stock which would then bring the overal cost of said share down to a level that would make the purchase of such shares more accesible.

Security:
To protect investors/share holders in the event that the investment company’s operator could liquidate his/her company’s assets and convert the virtual currency into real world currency thus leaving the investors shares worthless, any sale of a company’s assets must be brokered by Mindark with the funds acquired through the sale of said assets to be distributed amongst the current holders of the company’s shares based on the sale price and associated value of those shares.

Company Director
The investment companies director will be responsible for founding the company and maintaining the properties he/she purchases and as such should be compensated for their time and effort. The Director will be allowed to purchase personal shares of stock like anyone else in the community and should receive bonus shares upon reaching various financial milestones. Quite possibly a percetange of any transaction fees from the sale/purchase of shares would be in order as well to offset some of the marketing money spent on building awaress for the investment company.

 

Thanks, when I wrote this I had no idea there were already Stock Exchange Terminals everywhere. Once someone pointed them out I realized my train of thought and possible opportunity in EU isn't that far off.

It could work, I just wonder if MindArk has the staff to implement and facilitate some of these more complex features within EU.

We'll see!