Esim - POTENTIAL STOCK MARKET DANGERS!
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Hello everyone,
It’s time for another issue of;

With the stock market coming out I just wanted to inform you on some practices that are illegal in real life that may not be in e-Sim. I know real life should not be involved with e-Sim but as of right now we have no experience with a virtual stock market on a game which the economy will be based on war economics (yes yes, I know real life politics might make you want to say something but for the sake of e-Sim, don’t lol). The closest thing we have is the real stock market, so to be more prepared we must try to learn from it, since it there for all of us to see and it’s been around awhile. Before I continue you must keep in mind if you do any in-depth research the same rules of thumb may not apply because the real stock market consist of dang near everything, where in e-sim we only have 6 raw resources (wood, iron, stone, oil, grain and diamonds) and 7 finished products (guns, food, gifts, tickets, houses, defense systems and hospitals) and the people you buy stock from will only have these 13 tools to make(or loose) you and them money. So as an investor let’s look at some of the ways people screw others over in real life and see how it could apply in e-Sim. Also I suspect the many banks that are popping up may just get involved somehow too.
(not implying that the banks are bad, i ment they might get involved in the stock market)

Before I go on, let me state I am no expert in stock trading and don’t know the ins and outs of the new stock market model, so please read this with a grain of salt.

1. Insider Trading: “Insider Trading is one where an individual with upfront information about a company or organization and its business buys the stock of that company before the news goes public thereby gaining an undue advantage over the rest of the investors”
How this could happen in e-Sim (all speculation of course) : let’s say I am the CEO of a stock company and were doing well so we decide to add a dividend to our stocks, but this was not announced to the public. So if I were to tell someone I know to buy this stock because of the dividend that is insider trading because it was not public knowledge.

My scenario may not sound like much but insider trading is a broad term, so something big like dumping the company (don’t know why anyone would do this) and warning folks to sell their stocks to unsuspecting victims also could count.


2. Front Running: “is an activity wherein a stock broker/dealer who executes trades uses his position to execute trades for himself before executing the orders for his customers to gain from the difference in time gap between the orders executions.”
How this could happen in e-Sim (all speculation of course) : the CEO could buy stocks right before a vote passes to increasing the price of stocks then sell their stocks for a profit (assuming the stock sells well to begin with)

3. Painting the tape: “Engaging in a series of transactions in securities that are reported publicly to give the impression of activity or price movement in a security”
How this could happen in e-Sim (all speculation of course) : someone could very easily just buy and sell their stocks on the market over and over, and if it’s public knowledge who bought and sold what, it aren’t hard to see someone using a multi-account to do there bidding.

4. Improper matched orders: “Engaging in transactions where both the buy and sell orders are entered at the same time with the same price and quantity by different but colluding parties”
(Goes with the multi-account usage I stated above)


5. Squeezing the float : “Taking advantage of a shortage of securities in the market by controlling the demand side and exploiting market congestion during such shortages in a way as to create artificial prices”
How this could happen in e-Sim (all speculation of course) :stock company keeps 90% in the company(CEO, other company workers ect.) of the stocks and sells 10% while the company does well in the production aspects. The stock will increase in price but will do so at an even higher rate due to the lack of stocks being passed around in the public.


6. “Disseminating false or misleading market information through media, including the internet, or any other means to move the price of a security in a direction that is favorable to a position held or a transaction”
How this could happen in e-Sim (all speculation of course) :ONE WORD;NEWSPAPERS. Sell your stock at a price higher than what it’s worth, and then write in your newspaper why to buy this stock, giving false information. It happens in real life all the time and I’m willing to bet it >>>WILL<<< happen here. If they use a media source that’s not a part of e-Sim, it may be out of the admin’s hand so don’t be a fool, do your own research.

And as a courtesy to readers, if you are going to write about the stock market and suggest which ones to buy and sell, at the very least tell everyone what stocks you own before you do!


I used quotes from this blog here, she knows her stuff when it comes to stocks
http://anandvijayakumar.blogspot.com/2010/11/illegal-stock-market-activities.html


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contest for the SONS of LIBERTY! (13 years ago)

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