Offering Neufreistadt Bonds on the Metaverse Stock Exchange?

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Gwyneth Llewelyn
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Offering Neufreistadt Bonds on the Metaverse Stock Exchange?

Post by Gwyneth Llewelyn »

Hello all,

This is an idea for you to discuss and see if it fits in our model of thinking :)

About a year ago, Shaun Altman has launched the [url=http://www.slsolutions.org/:vn30q5i6]Metaverse Stock Exchange[/url:vn30q5i6], a way to get SL companies "go public" by offering shares. He used his own company, Cyberland (a land management company), to test the model out. Shares were tied to land offerings; the idea is that if Cyberland ever went bankrupt, people would get bits of land in proportion to the shares bought.

Now, we have a model to offer City Bonds — rather well discussed, bills passed to the effect, lots of regulations in place, etc. I'm assuming that part of the funding for the next sim (Colonia Nova) will, to a degree, come from City Bonds.

Shaun is currently allowing two further companies into the Metaverse Stock Exchange, after a long period of evaluating them as to their owner's seriousness and stability over a long period of time. I wonder if we could submit a proposal to enter that stock exchange as well — in our case, not through "shares", but City Bonds that would be available to be bought by non-citizens of N'stadt.

What do you think about this? Is it "too early" for that (in the sense that we should grow Neufreistadt even more mature)? Should we approach Shaun, and see what he thinks about the idea? (He might put us "on hold" for a few months just to watch where we're heading) Or should we completely forget about the idea? ;)

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Pelanor Eldrich
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Re: Bonds

Post by Pelanor Eldrich »

Hi Gywn,

Midas, Lee and I have been trying to implement an easy mechanism by which the GM could issue bonds from the Bank of NF. The details are contained in a bill that was passed last session. These bonds should be obtainable directly from the Bank of NF as well as traded at bond counters. Strictly speaking, a stock exchange trades equity, not debt, but if Cyberland were to open a bond trading counter we could trade there.

I (along with Midas) would like to trade bonds, Shaun probably would and people should also be able to obtain them from the CDS bank (bank of NF). Structurally, it would be nice to have bond/credit ratings and some kind of SL wide (or at least CDS wide) prime interest rate.

I'd also like to be able to issue corporate bonds (debentures and mortgage backed securities) to improve the cash flow of Eldrich Financial.

I personally feel that bonds, being inherently more conservative/trustworthy might actually attract more interest than SL based stocks have.

Pelanor Eldrich
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Post by Lee Dimsum »

What is the emission volume? I may buyout all city bonds :)

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Gwyneth Llewelyn
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Post by Gwyneth Llewelyn »

I'm glad that at least some of you are thinking about it; Pelanor, at this point the best we can do is to ask Shaun about his opinion... naturally, if that's in the city's best interest, of course, and if the current government is interested in pursuing this option. I guess that it'll have to wait for after the elections, though...

And Lee, thanks for your confidence :)

"I'm not building a game. I'm building a new country."
  -- Philip "Linden" Rosedale, interview to Wired, 2004-05-08

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