Public Corporations - Target Ownership
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Simcountry is an Online Digital World where you are the President of a country. |
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Public Corporations - Target Ownership
It is possible for presidents and CEOs to set target ownership percentages for their public corporations. This function is available from the share market page.
A president (or a CEO) can set a target percentage for each of the public corporations under her control and shares will be automatically offered on the market or bids will be issued to purchase shares.
Setting the target to 0 means that the owner is trying to sell all his shares in the corporation Setting the target to 100 means that the owner is trying to pull the corporation from the share market. In case the owner is a president, the corporation will become a state corporation. In case the shareowner is a CEO, the corporation will become a private corporation. There is no guarantee that the target will be met. Share owners may just hold to their shares and not sell them.
Setting targets means that many shares can be offered or many bids may be issued. As this process is automatic, it can cause the share price to fall heavily or in case of many bids, to increase significantly. If the shares remain unsold, prices keep falling. If bids remain in the market with no offers to sell, share prices will increase each game month.
There are some control on the share market to prevent absurd movements. Shares that are reaching very high P/E values will not keep increasing in price even when there are request for these shares.
The offering and bidding of shares is limited by general parameters that also apply to manual transactions. An example of such limitation is that shares cannot be offered on the market if a high percentage of the shares of the corporations are already offered and there are no buyers. Similar limitations are in place for the case that too many bids to buy shares have been made and there are no sellers.
Investment funds in the game are programmed to buy and sell shares if some conditions are met (mainly driven by the P/E ratio). When share prices are increasing, some investment funds will automatically start selling and cash a profit.
When share prices are falling, and P/E ratios are lower, shares become more attractive and investment funds will increase purchasing.
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