Welcome to the Hutorian Central Stock Exchange we are located in Acton, Adelia, Hutori and are an International Stock Exchange where national and multinational companies and corporations may trade their securities to investors.
FAQs:
So what is a Stock Exchange?
A stock exchange is a place where corporations can sell stock in their company to investors.
Okay…so what is stock?
Stock also known as a share is essentially a small piece of the company. It comes with the ability to make corporate decisions and in some cases can even reap dividends. However, the amount of power you hold is directly related to the type of share you own and the percentage of shares.
What is a dividend?
A dividend is money that a corporation pays out to it’s shareholders or people who own it’s stock. Each share typically yields a certain amount of money per quarter. However, not all corporations offer dividends.
Wait there is more than one type of share?
Well sometimes, most companies only offer one type of share and that share is equal to one vote in the company. One vote may sound like a lot but, when there are ten thousand plus shares in a company it’s really not. However, some corporations sell multiple types of shares typically referred to as Class A and Class B shares. In this system one type of share usually confers more votes than the other. For instance in some cases a type A share may confer 10 votes per share where a type B share may only confer 1 vote per share.
Okay, so how do I list my company on the Stock Exchange?
Well that’s simple you just fill out this form and post it here.
Company Name: (The name of your company)
Company Type: (This would be listed as private until you take the company public)
Traded As: (This would be a one to four letter abbreviation of your company’s name i.e. The International Terran Bank would be abbreviated to ITB and it would be listed as HCSE: ITB)
Industry: (This is just what type of industry your company does i.e. Aerospace, Information Technology, etcetera)
Headquarters: (Simply where your company is based)
Area Served: (Where you operate, it could be a single country, multiple or even Terra wide)
Products: (What your company produces)
Company Float: (This is the total amount of shares available to be traded. Please list your shares too even if you don’t plan to sell. If you plan on keeping some shares list it like this Total Shares [Shares to be sold])
Dividends: (If yes, how much do you offer per quarter per share. Please keep it reasonable because if you have 10,000 shares at $0.25 per quarter per share that is $10,000 per year. If no then that’s all you have to do.)
Corporate Account: (The bank account your company plans on using for all of you transactions, we recommend such institutions as the International Terran Bank, the Jelbék Bank of the World or the First Bank of Likatonia if you don’t already have an account.)
Website: (A link to your company’s forum page)
I’ve filled that out and posted it now what?
Well the HCSE will then evaluate the value of your company’s shares. This will be based on a variety of factors including if the general trend is selling or buying, what your company is producing and the demand for that product, how well the company’s products are performing, if any legal action is being taken against the company and the economic climate of your host country to name a few.
So once evaluated are the stock prices final?
No, they will continue to vary depending on the above factors. However, if nothing is done with the company the price will stagnate and eventually plummet.
How many shares should I initially offer?
That is truly up to you and there are advantages to offering a lot and advantages to offering a few. If you offer a few then each share is intrinsically worth more, there is more centralized control and you have fewer people making decisions. If you offer a lot then the stock price while less tends to be more stable, there are more shares to sell and you have more input from other sources. However, if you maintain a majority stake you can always add more shares later.
Should I offer dividends?
Again it is truly up to you and there are advantages and disadvantages to offering dividends. The advantages are that your stock is typically valued higher and your company is generally seen as more trustworthy. The disadvantages are that you have to pay your shareholders meaning that you will have less capital to spend elsewhere.
Is there anything else I should do?
Well you don’t have to but, if you are doing an IPO (Initial Public Offering) you may want to post along with your company info an investors packet. An investors packet is simply an overview of what your company does, why it does it better than other companies in the same industry, what they will gain if they invest in your company and ultimately why they should choose your stock over anyone else’s.
Okay but, what if I want to buy and trade?
Well then you can become a registered stock trader by filling out and posting the following:
Name: (Your character’s name)
Company Affiliation: (What company they are affiliated with, they don’t necessarily have to be affiliated with anyone. If they’re not just put N/A)
Country of Origin: (Where did you come from? i.e. Hutori, Luthori or Trigunia)
Trading Account: (The bank account you plan on using for all of you transactions, we recommend such institutions as the International Terran Bank, the Jelbék Bank of the World or the First Bank of Likatonia if you don’t already have an account.)
Alright, I’m registered now what?
You can now make purchase orders! Simply post how many shares you want to buy or sell and the purchase order will be fulfilled as soon as possible.
OOC: (Keeping it real) Please keep your company(s) realistic that means keep their net worth in line or lower than real world companies. Please remember that even the world’s most powerful and profitable corporations such as Microsoft, Google and Chevron still only have a net worth ranging from 120-226 billion. And a corporation just offering an IPO is most certainly not valued at the top end. You can most certainly reach those heights but, it will take RP, time, and luck. Also for non-backed traders the richest man in the world has a net worth of 80 billion, emphasis on net worth which means that it isn’t all available to be used. Traditionally Terra has been RPed as poorer than the real world so please keep that in mind when keeping it real and thank you.