Market Discussions

Hello, my fellow internet spaceship pilots. I'm proud to announce that Domino Investments Bank is now open to the public for trading.

We're a small corporation who deals in industry and trade to make money. As you know, it takes money to make money. This is where you come in.

DMIB (Domino Investments Bank) will sell it's shares at the fixed price of 1 Million per share. At the end of each month we will pay out 100% of the profits made in the form of dividends. Note, that dividend payments may happen multiple times a month, but will happen at least once a month typically at the end.

If you're interested please read the DMIB - Investor Resource page.

You can find our share information at the DMIB - Share Information page. You will also find the corp API Key there for verification and your auditing needs.

We currently have 2000 shares for sale.

If you have any questions, feel free to drop me a line.

Thank you.

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Edit - 10/2/2012
All shares have been sold. New shares will be available come new years. If you wish to pre-purchase some shares, please send me a message and I'll be happy to help or answer any questions you may have.
Again, thanks for looking!

If 100% of the profit is paid out, what is your incentive?

I'm sure I'm understanding something wrong or you're saying it wrong, but if 100% of the profit is paid out, then you gain absolutely nothing from the extra money. Essentially working for free.

Do you charge any management overhead? Fixed monthly fees, percentage of profit, anything?

If anything, a larger wallet is worse because the more money you have, the lower your margins, which means you not only don't gain something, you actually lose something.

Again, I assume I am misunderstanding something.

Yea Bara, I guess you do. For example: If I'm holding 50% of all shares and pay out all profit as dividends, then 50% of the profit ends up being in my wallet since i own 50% of the shares.

Essentially, he is sharing his profit with fellow shareholders just like other people do when being invested in - just that he does it via shares.

Still I'm wondering what his main character is (this is about 1 month old), which character does the trading/production and so forth. It's an interesting idea - but I personally do not have enough trust in this from a scam-perspective.

The OP and Vadane Deninard seem to miss Barakach's point.

The OP says "I'm the majority shareholder, so I make a lot of money." ... well, the OP stands to make no more under this investment scheme than if he simply invested his own ISK, despite the extra work.

Consider some cases:

Case 1: The OP invests his trading company's 2 billion ISK now, without having any investors buy shares. And let's say he thus makes 1 billion in profit in the month. He keeps the 1 billion ISK in profit.

Case 2: The OP sells 1 billion in shares to investors, so his investment in the company is trimmed to 50% (i.e., half of the trading company's ISK returns to his wallet and it not used for trading by the business). With the same 2 billion ISK amount, the company again makes 1 billion profit. However, half of the profit is due to the investors, so the OP makes only half as much as in Case 1.

Case 2a: The OP does Case 2, but also invests his own 1 billion that was returned to his wallet when he sold his shares to the investors. At the same rate of return as for the company, he makes 500 million ISK on this amount, and so catches up to the return he made under Case 1. Of course, he has a whole extra set of work, dealing with the extra ISK, the accounting of the company's ISK vs. his own ISK, and there is the apparent conflict of interest in his trading (does he take the best deals with the company's ISK or his own?).

Case 3: The OP sells 1 billion in shares to investors, so his share ownership in the company is trimmed to 50%, but he is a poor accountant and continues to use all the ISK (his original 2 billion ISK + the investors' 1 billion ISK) to trade for the company. So with 3 billion ISK, he makes 1.5 billion ISK in profit. The OP pays out the 50% profit via the shares, still making less than he would have made if he used only his own ISK.

Case 3a: The OP belatedly realizes his accounting/ownership mistake and fudges some numbers to pay out only a third of the profit to investors, despite their 50% ownership. Again his profit is the same a Case 1, but again he had the extra work all month.

In no case is the OP better off when he's offering to pay back 100% of the profits to investors.

Add in the tendency of marginal rates of return to decrease as the capital involved increases, and the OP would simply tend to do better without taking investments.

This is EvE, beneficence need not apply.

The premise that underlies this argument is that more capital grants you access to new markets, with better margins.

But you said that you already have "many billions". In New Eden, this means you long ago reached the point of decreasing marginal rates of returns, which you know from your trading experience.

That's why I concluded my previous post with: "Add in the tendency of marginal rates of return to decrease as the capital involved increases, and the OP would simply tend to do better without taking investments."



This makes me wonder if you might be confusing margin amount and margin rate. It is easy to make more profit amount with more capital, but hard to make profits at a faster rate. Unless taking investments increases the margin rate achieved with your own ISK, it's not a good move, fiscally.



This seems the only plausible motive for your offering, but even this doesn't make much sense.

If you want to help others, just give them the seed ISK to get them started with trading, or explain to them how to make ISK. Taking others' ISK and using it for them is not really "helping them make money".

I do agree that your total net profit increases, but your percentage growth goes down.

Say you have $1 and you start trading soda and gum. At the end of the month you may have $3, which is 3x of what you started with.

Say you have $20 total, but $19 is other people's money. You start trading soda and gum and at the end of the month you have $30.

In the first example, you gained $2; but in the second example, you only own $0.50 of the $10 of profit. The other $9.50 goes to the share holders as you claimed 100% of the profit is returned.

If you had some sort of management charge, like 30%, then you would have made $3.35 in the case you had $19 from other people. This is why I was asking if you were planning to have some sort of management charge, be it percentage or fixed fee.

Very rarely does more money in you wallet mean a better percentage return.

Anyway, I am done derailing your thread and I wish you luck in your endeavors.

Summary for your effective returns:
$1 - 200% return
$1 and $19 with 100% profit - 50% return
$1 and $19 with 70% profit - 335% return

Your "Share Information" spreadsheet indicates that 12000 shares are owned.

In-game, Domino Corp [DMNO] appears to have 10000 shares, and Domino Investments Bank [DMIB] appears to have 2000 shares.

A few questions:

1. How many shares are there? Are they all DMIB shares?


2. Your list of investors includes at least half a dozen pilots with the last name "Domino" who are in Domino Corp. Are those your own alts?


3. Almost all shares appear to be owned by current or former members of SWAG Co. [SWAG] corporation. What connection, if any, is there this IPO and that corporation?

After some further research, I think I may be ready to get in on this action.

I would like to initiate the secondary market for these shares by bidding 100 kISK per share, for up to 100 shares.

Will these shares be registered on a stock market, like the BSAC Exchange, or should they be traded in this thread?

Yes, I double checked. There is an error on the share count for Domino Investments Bank. There are 12000 shares, but the count on the corp info only shows 2000. I'll submit a bug report to CCP



Silly, there are no pyramids in EVE!