On Monday, June 16, 2003, at 08:03 AM, Katz Global Media wrote:
this is an interesting concept.
How do you value the dividends?
How is the stock's value calculated?
Does owning shares make one a part owner of TGC, or just the digital shares used like an e-currency?
The problem I see outright is that there are no third parties valuing the stock. So who determines the value and dividends?
The people trading the stock are the third, fourth, fifth, etc. parties valuing the stock. Each party decides for himself whether he would, at that particular moment, rather own 1 share of TGC stock or X gold grams, where X is the price that someone else is bidding or asking at that moment.
Of course, TGC would completely determine how much in dividends per share they were willing to pay out.
At the current rates it would be 15 months to see a profit...
How do you figure this? I didn't see any dividend information on TGC at all.
Also, when you purchase an instrument that pays dividends, you are buying a future stream of revenues. Ordinarily I wouldn't expect any dividend stream to completely pay off your capital investment within only 15 months, if that's what you mean by "see a profit." In most ordinary scenarios, you might see a dividend rate of maybe 5% per year, but even if you sell your shares for the same price you bought them a year ago, that 5% payout is still a profit.
So I really don't see where you got this 15 months.
I like the idea though. I could see this growing into something much bigger if done right. I could imagine a landslide of companies
signing up to grab some fast funding. The DD would be immense unless it was just a free for all for all comers and let the market
sort them out ebay style.
Each trader must do his own due diligence research. If you would rather own 1 share than X gold grams, buy it. If you would rather own X gold grams than 1 share, sell it. Your choice will be guided by your own personal situation, values, and knowledge.
For example, you might decide to sell a share for X gold grams even if you are nearly certain that the price will double within 4 months, simply because you personally need those X gold grams for some important purpose right now. Individual decisions to trade at a particular price are based on infinitely subtle personal factors. So a free market must be a free-for-all, otherwise a particular person at a particular moment will discover that he is not free to trade as he sees fit.
-- Patrick
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