Global Market question

Banking and Finance DLC for Capitalism Lab
Post Reply
NickD
Posts: 3
Joined: Wed Dec 23, 2020 9:34 pm

Global Market question

Post by NickD »

Hi guys, I am constantly bugged by one question around the Global Stock market. Maybe I don't understand fully how the GSM works or I lack fundamental knowledge in the field of stock trading so I was hoping someone could help.

The example is this - With my company I run several types of successful businesses (retail, internet, media etc.) steadily bringing me some nice profits and pushing the cash volumes higher and quicker thus my candles are all green for years passed. At one moment I try my luck on the big boys exchange - the Global Stock market where, for say, I buy shares of Apple for 20M. One week later, as the price of the Apple stock fluctuates up and down and it dips heavy below the price point I bought it for initially, I suddenly start to loose massive amounts of cash and this forces me to withdraw loans from the bank to avoid bankruptcy, despite I am still having my local companies bringing me cash and despite I made a share purchase for 20M initially. From my knowledge in company stock trading investors (who use cash accounts) cannot lose more than they invest in stocks, so I assume in-game when you usually buy X amount of stocks of a company (investment in asset), the fluctuation of the stock price should only affect the initial investment made for it and not the overall cash flow of the company. This phenomenon does not appear to happen when I buy stocks of a company from the Local Market, and the shares value start to tank heavy for example, it only shows these particular shares are currently affecting my initial investment (e.g 13% down from the initial investment). This price fluctuation on the GSM affecting my current cash flow prohibits me from long gradual investment with big volumes in these companies. Am I missing something here?
User avatar
David
Community and Marketing Manager at Enlight
Posts: 9376
Joined: Sat Jul 03, 2010 1:42 pm
Has thanked: 21 times
Been thanked: 52 times

Re: Global Market question

Post by David »

The change in your cash should be due to other reasons as the fluctuations in stock prices have no effects on your cash.

You may do a test by starting a new game and only invest in the global stock market without running any businesses and see if you will experience the same issue.
Post Reply