Article
Today at GEM we will explain some basics about the Stock Market.
As you know, the SM is now open to everybody, anyone can open a company.
Everybody is rushing for the "Get Rich Now", that the market offers.
Here are some of your possible questions:
1. Which Company should I invest in?
2. What makes the company valuable, and how much?
3. How to evaluate Share Price and Potential Future Income?
We will answer all of these questions.
1. Which Company should I invest in?
Answer: There is no one company anybody should or should not invest in. Though you must beware of Fraud, and anybody charging way over the stock's real worth. If a company diluted it's initial 50 Gold and is now worth ZERO, do not buy into it. After it regains some value, if the numbers are right (see below) it becomes worth it to invest in it.
2. What makes the company valuable, and how much?
Answer: A company's value is based on it's current worth and it's day-to-day upcoming gain.
Here we would like to go into detail: A SM company that has no Companies is currently WORTHLESS. It's day-to-day gain is ZERO. Such a Stock should be avoided unless you know that a company will be purchased within the upcoming Three days.
When a Stock is started it Costs 70 Gold and is Worth 50 Gold. Such a company is considered a shell (meaning that there is no flesh [actual worth] to the company). This Lifeless company is worth to you (if bought in whole) between 50 Gold and 65 Gold (To open the same thing yourself would cost you 70 Gold). Buying parts (shares, less than 51%) of this company is not usually a good idea (even for 0.50 Gold per share).
Every Company added, adds that company's value to the Stock. A Q1 company costs 20 Gold to create, and a Q5 company costs 390 Gold to create Therefore, adding a company adds anywhere between 20 Gold and 390 Gold to the Stock worth (This is not an exact formula, as companies lose some value from the original expense it costs to create them).
But, if a company does not have workers working in them, or the amount of productivity is low, then these companies lose much of their immediate worth.
Every company (that has workers [that work]) produces products. These products get sold (unless there is an overflow of them). The higher the Quality, the more Gold Per Product (GPP) (all analysis is based on Gold because that is a worldwide currency and the way the SM works). Basic Products and Q1 Products can be sold at approx. 0.0004 GPP - 0.0006 GPP, and Q5 products at approx. 0.05 GPP - 0.3 GPP (there is a major difference if it's food or if it's traveling tickets [houses, etc... were not brought into this evaluation]). These products also lift the company value because of the cash that comes into the company daily.
[I can write a lot more about this subject, but most basics are here].
3. How to evaluate Share Price and Future Income?
Answer: We touched on this subject in the previous answer, but there's much more to be said. First, the share price - if Company A is currently worth 1000 Gold (based on the assessments in the previous answer), and it has 1000 Shares, the company is worth 1 Gold per share. This, of course is flexible, and based on futures can be worth up to double that amount. It is a mistake to overpay because there is no seller at the desired price. If the Ask (Seller) is asking for more Don't Buy, wait for it, either their price will go down, or company value goes up, or somebody overpays for nothing (Ask's are always looking for these).
Future Developments (Income), is where the gray lines of investing come in. If Company A says they will soon open up a Q5 Company Don't Believe Them. This can be considered fraud or wishful thinking. When a company puts this on their description, it is (usually) to get some more cash from you, before they become Bankrupt/Unmoving.
Some SM basics to live by:
1. Don't invest in companies that are Shells, unless you're taking over the Shell.
2. If the Company has companies, look further into them (workers, productivity, etc...).
3. Don't overspend, if the price is Wrong, the price is WRONG.
4. Look into the possible future, but don't believe someones word for Nothing.
GEM is now open for investments, please fill out this FORM if you are interested in investing with us. [For more information about GEM read this Article [from the Pot of Gold and on ].
Actual Investing will begin from approx. Day 297-300.
Please Vote, Sub, and Comment..
P.S. I would've added more Pictures but it was getting long without it.
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About the game:
USA as a world power? In E-Sim it is possible!
In E-Sim we have a huge, living world, which is a mirror copy of the Earth. Well, maybe not completely mirrored, because the balance of power in this virtual world looks a bit different than in real life. In E-Sim, USA does not have to be a world superpower, It can be efficiently managed as a much smaller country that has entrepreneurial citizens that support it's foundation. Everything depends on the players themselves and how they decide to shape the political map of the game.
Work for the good of your country and see it rise to an empire.
Activities in this game are divided into several modules. First is the economy as a citizen in a country of your choice you must work to earn money, which you will get to spend for example, on food or purchase of weapons which are critical for your progress as a fighter. You will work in either private companies which are owned by players or government companies which are owned by the state. After progressing in the game you will finally get the opportunity to set up your own business and hire other players. If it prospers, we can even change it into a joint-stock company and enter the stock market and get even more money in this way.
In E-Sim, international wars are nothing out of the ordinary.
Become an influential politician.
The second module is a politics. Just like in real life politics in E-Sim are an extremely powerful tool that can be used for your own purposes. From time to time there are elections in the game in which you will not only vote, but also have the ability to run for the head of the party you're in. You can also apply for congress, where once elected you will be given the right to vote on laws proposed by your fellow congress members or your president and propose laws yourself. Voting on laws is important for your country as it can shape the lives of those around you. You can also try to become the head of a given party, and even take part in presidential elections and decide on the shape of the foreign policy of a given state (for example, who to declare war on). Career in politics is obviously not easy and in order to succeed in it, you have to have a good plan and compete for the votes of voters.
You can go bankrupt or become a rich man while playing the stock market.
The international war.
The last and probably the most important module is military. In E-Sim, countries are constantly fighting each other for control over territories which in return grant them access to more valuable raw materials. For this purpose, they form alliances, they fight international wars, but they also have to deal with, for example, uprisings in conquered countries or civil wars, which may explode on their territory. You can also take part in these clashes, although you are also given the opportunity to lead a life as a pacifist who focuses on other activities in the game (for example, running a successful newspaper or selling products).
At the auction you can sell or buy your dream inventory.
E-Sim is a unique browser game. It's creators ensured realistic representation of the mechanisms present in the real world and gave all power to the players who shape the image of the virtual Earth according to their own. So come and join them and help your country achieve its full potential.
Invest, produce and sell - be an entrepreneur in E-Sim.
Take part in numerous events for the E-Sim community.
