Dan Mixer
United States
Orrington
Maine
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The rules state in 6.5.5.2:
"If ten times the dividend per share equals or exceeds the current share price, the price marker is moved one square to the right...."
So, basically, when a Public companie's operating revenue exceeds its share price, the the marker is moved one square to the right. The question we have is this:
Does this happen whatever the company does with its revenue? Here are the choices, (and I know several of these might be right):
1) The company pays out 100%, so its stock price moves one to the right. Its revenue exceeds the starting stock price, so the stock price moves one to the right again, thus getting 2 bumps in one round.
***OR***
2) The company pays out 100%, so its stock price moves one to the right. Its revenue exceeds the stock price, but the stock price goes up only due to the 100% payout, and the bump from the high revenue is lost.
3) The company keeps all of its revenue, so its stock price is moved one to the left. However, Its revenue exceeds the starting stock price, so the stock price moves one to the right, thus ending up where it started.
***OR***
4) The company keeps all of its revenue, so its stock price is moved one to the left. Its revenue is great, but the bump is lost due to the company keeping the revenue.
...the same 2 choices can be put forth for the 50/50 split of revenue.
In a nutshell, will a company receive the right bump on its stock for generating revenue greater then its stock price IN ADDITION to the stock price movement of how it disperses its revenue? i.e., as in the above example, would it be possible to get 2 bumps in one turn?
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Dan Blum
United States
Wilmington
Massachusetts
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Your restatement of the rule is incorrect and is causing most of your confusion, I think.
The rule is that when the total DIVIDEND is greater than or equal to the share price, it goes up - NOT the total REVENUE. The dividend is what is paid out. If the company pays 50% of its revenue as dividends, the stock price increases if that 50% is equal to or greater than the current share price. Same for 100% payout.
There is no extra share price increase. If you look at 5.5.5.2 again, you will see that there is no mention of the price increasing automatically just because the company pays dividends - they have to be high enough.
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Chris Shaffer
United States
Portland
Oregon
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I concur with Dan. The amount actually paid to shareholders is what matters.
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Dan Mixer
United States
Orrington
Maine
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That would explain a lot! We have been playing that as long as the company paid out 100%, the shares went up. Hmm... No wonder our games have been movingly along so quickly.
Not sure if I like this new development  I can see this is going to tack on a couple hours to our playtime, and we have juuuuust where we want it now.
(Edit) Hmm...on the other hand, with a bump in stock price possible on a 50/50, that might make up for it..
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Chris Shaffer
United States
Portland
Oregon
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Since the game ends following purchase of the first 8 train, I am befuddled how slowing stock price movements will slow the game down. Surely it just means people can buy more stock, speeding the game along?
Note that minor companies do not have to pay their current stock value to increase. The restriction only applies to major companies.
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Dan Blum
United States
Wilmington
Massachusetts
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Icedanno wrote: That would explain a lot! We have been playing that as long as the company paid out 100%, the shares went up. Hmm... No wonder our games have been movingly along so quickly. Not sure if I like this new development I can see this is going to tack on a couple hours to our playtime, and we have juuuuust where we want it now. (Edit) Hmm...on the other hand, with a bump in stock price possible on a 50/50, that might make up for it..
In practice, if you are running your companies reasonably well, the stocks will go up most of the time. Although, I agree with Chris in that I don't understand what that has to do with the length of the game.
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Dan Mixer
United States
Orrington
Maine
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I was thinking that the stock price would increase less with the new understanding. However, like I mentioned before, with the right way of playing the stocks could go up on a 50/50 payout if you get a good run and thus even speed the game along further.
We will be playing Monday, hopefully our fist 4 player game... can't wait to play it the right way!
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