Player Equity vs Market Capitalisation


#1

So this is pretty big in the concept of the game and probably incorporates what I may have listed as bugs elsewhere. I’m fully aware it’s probably too far down the track to change all the coding now but please stay with me and read through. This is where I was trying to get to with the stages of the game earlier.

A: Winning the game
For all the tables of leader boards, I wouldn’t consider winning the round unless I had the highest player equity. Unfortunately we don’t measure it. We measure holding company equity and include in that figure the market capitalisation of sharemarket listings, which combines the value of shares I own with those held by others.

B: Starting position
To start the game we have 2 entities - the player Fireyscorp and the holding company Metal Access. Both start the game with 1 million G and as part of the start up training, the holding company will be granted a free operating retail or manufacturing business. Fireyscorp owns 100% of Metal Access

C: Holding Company Build Up
To fund the growth / improvement of operating businesses, the holding company may have to issue bonds, borrow money, or I can choose to invest part of my own starting cash into more equity in the holding company.

That would increase the value of my 100% of Metal Access - (Leader-board Table - Holding Company Total Value).

As bxp is built up and cash-flow in the holding company allows, more operating businesses are opened and the holding company grows. Once liquid, as long as there are no outstanding borrowings and all bond liabilities are safely accrued, a holding company may choose to issue a dividend to it’s shareholder(s).

D: Player Build Up
Fireyscorp the player starts with the initial 1 million G. It can be invested in Metal Access -the holding company, bonds or shares in other holding companies. The only ways that Fireyscorp can build cash is through dividends from shares, interest payments and capital returns from bonds, selling shares and bonds, or selling down his ownership of Metal Access through IPO.

When Fireyscorp sells down his ownership of Metal Access, his cash increases but the % of his holding and therefore value decreases. Leader-board Table - “Player Equity” is made up of cash, equity in own holding company and their portfolio of shares and bonds

As a player I own somewhere between 51% and 100% of my holding company, which owns all of my operating companies and a pool of cash - starting cash plus retained earnings. If I’m a good businessman, there is an advantage in retaining 100% of my holding company as I benefit from the building value and I get all the dividends to enable me to buy other things.

As the game progresses, the importance of my operating businesses reduces and the performance of my share / bond portfolio becomes more of a focus


#2

D: Player Build Up
Fireyscorp the player starts with the initial 1 million G. It can be invested in Metal Access -the holding company, bonds or shares in other holding companies. The only ways that Fireyscorp can build cash is through dividends from shares, interest payments and capital returns from bonds, selling shares and bonds, or selling down his ownership of Metal Access through IPO.

I quite love this Idea, its a sort of management of yourself and gives stockbroking a boost, because people would use it much more, and realistic (only thing they should hold up is buying to much stocks of yourself) in this way, in the future u as player could own that much u could own a company, (but i guess they not gonna let this happen, because u could abuse this as a player)

As the game progresses, the importance of my operating businesses reduces and the performance of my share / bond portfolio becomes more of a focus,

Totally agree,


#3

Hey Firey … just a quick note to let you know that I’m trying to find time to review your suggestions closely … this and another you posted on consumer groups a while ago. It’s taking me a lot longer to get to them and I didn’t want you to think we were not going to review and reply.