Ludicrous Subsidiary Scam

[zzzname]

Here is a guide to scamming investors and becoming the richest person in Capitalism Lab. Following this guide in the provided order is a requirement.


* KEEP THE GAME PAUSED UNTIL ALL OF THE REQUIRED STEPS ARE COMPLETED! *


USEFUL TIP: Use Shift + Right Click to add larger amounts.


1. Set up a new subsidiary company and provide it with as much capital as possible from your main company (Minimum $20 000 000).
- Hire the cheapest CEO to lead the subsidiary company (although the salary doesn't make a big difference).
- Uncheck everything on the "Expansion Strategies" and "Financial" tabs to prevent the CEO from doing any actions. The other tabs do not matter.

2. Go to the "Financial Actions" tab and create an Initial Public Offering (IPO) for your subsidiary (20% suggested maximum percent of shares for IPO).

3. Switch to Issue New Bonds on the "Financial Actions" tab. Maximize Issue Quantity and Term Length (Term Length should be over 3 years to prevent the company from going bankrupt prematurely).
- Keep issuing bonds until the maximum amount has been reached.

4. Switch to the "Stock Exchange" tab and choose your subsidiary company from the list to examine the stock price. Now, the game may be set to a desired speed (Game speed 5 for the fastest results).

5. Keep a close eye on the subsidiary's stock price!
- Usually the price skyrockets for a year or two before crashing down rapidly. The subsidiary will go bankrupt in a few years since it can't pay the annual bond interests after running out of capital.

6. When the stock price of the subsidiary company is at a high level, PAUSE THE GAME and dump all of the owned stocks in that company.

7. Voilà - Rinse and repeat! The amount of money earned increases exponentially with every cycle.


OPTIONAL STEPS:

Making a profitable company out of a bond scam subsidiary is possible when the subsidiary has enough capital (for example, from issuing bonds) to buy all of the public companies in the stock market.
- The subsidiary company should own 75% of a company (or more) to merge it with your subsidiary in the "Stock Exchange" tab.
- After merging all of the public companies to your subsidiary company, it should be profitable enough to pay for the issued bonds.

After step 3., it is possible to buy the issued bonds of the subsidiary company with your main company from the "Bond Market" tab (not advised).
- Remember to sell the bonds owned by your main company before the subsidiary goes bankrupt to not lose capital!
- This will give a high percentage yield but it is advisable to use that capital at step 1. when setting up a subsidiary company. The increase in stock value before dumping the stocks is usually greater than the bond yield.


Happy scamming!
- Z

[David]

In the upcoming version 6.5.16, it will fix a bug with the stock price of a company that is heavily in debt with bonds. It will also block the loophole you described.