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David Archer RJ: BallC CO: BallC Post Rating: 10 + / - Total Posts: 142 Karma: 135 Joined: Apr 11, 2012	Posted on May 5, 2012 (Last edited on Jun 30, 2012) .
Victoria Raverna RJ: Victoria Raverna CO: Victoria Raverna Post Rating: 0 + / - Total Posts: 107 Karma: 43 Joined: Apr 11, 2012	Posted on May 6, 2012 The solution is not that simple. When issuing new shares, the share price should drop but then it'll still help other type of exploit. For example: Right now if each share worth $10 and you issue 10M share, the company get 100M and the stock price stay the same which make it possible for people to increase the NW by transfering part of the 100M out of the company (as bonus or dividend) and then buy share which raise the share price. Now if it is fixed so when you issue share, you lower the price. Then maybe if share price is $10 and you issue 10 M share, you get only 80M and the share price become $8. Now this will help exploiter too. For example if I want to increase my share in expense of others. I can save up cash and slowly sell my own share while keeping the share in roboinvestors hand under 20% of total. Then I'll issue as new shares which will push the share price down while increasing the NW of the company because of the extra cash. Then since the price of share is down, I can now increase my ownership percentage cheaper and as bonus the company networth is higher than before. Now as for removing roboinvestors completely, that'll probably impossible since it'll kill stock market. As for just disable the ability to issue stock, that is also not a good idea because once a company go public, the only legal way to add more cash to it is by issuing more share. If you disable that, then the only way left is to use B2B exploit which was something that now illegal (other shareholder can sue you). With public company: Only legal way to transfer money in is through issue more stock. Only legal way to transfer money out is through dividend. I think the real problem is that as the chairman or controller of the company, we're doing insider trades. When we're manipulating the stock market, we're doing it with insider knowledge. So how do real world limit insider trade exploit? Maybe some of those can be implemented.
Victoria Raverna RJ: Victoria Raverna CO: Victoria Raverna Post Rating: 0 + / - Total Posts: 107 Karma: 43 Joined: Apr 11, 2012	Posted on May 6, 2012 The solution to the bonus thing is simple, don't count money from issuing stock as income which make it impossible for chairman to steal 20% of that cash as bonus. By counting those cash as income, you encourage chairman to set the bonus to 20% because those money are taxed heavily and so as chairman you probably want to offset paying heavy tax for issuing shares. :) So stop counting those as income which mean those influx of money are not taxed and not payed out as bonus. Now this still doesn't stop chairman to pay those out as dividend but at least then all shareholders including the roboinvestors get paid.
Bill Gates RJ: Bill Gates CO: Bill Gates Post Rating: 1 + / - Total Posts: 19 Karma: 17 Joined: Apr 6, 2012	Posted on May 6, 2012 "Removing the roboinvestors completely should be the long term goal and would remove many of these problems." A stock market full of bots makes the playing field very uneven for any normal player, honestly Scott, you need to stop allowing this =_=
Lorenzo Boccaccia RJ: Mon Opoli CO: Mon Opoli Post Rating: 0 + / - Total Posts: 80 Karma: 71 Joined: Apr 10, 2012	Posted on May 6, 2012 Real world have things like closing a title off the market for excess gain or loss

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