by counting » Sat Jun 14, 2014 11:31 am
Personally I don't think there needs to be a condition for "split", but an active action like issuing new shares. The only other possible trigger I can think of is that when number of shares drop to a point where 0.01% (that is a company has less than 10,000 shares, which is very unlikely in normal situation) can't consist 1 share, then there's reason to auto-split it.
In game mechanism wise, there should be limit about the ratio of split, and how much time between split, and of course not over the cap of 1 billion shares. And split needs to have some actual function in game, otherwise there's no point implementing it. In real world, split can increase the liquidity of the stock, since more potential investors can buy it now, so perhaps the in game split can increase the "velocity" of stock price changes, or changes with wider range to reflex the effect, in proportion to "white stocks" hold by "general public".
P.S. Since reverse split is automatic at such a low price, I don't think there is a chance of "accidental forward split" causing issues though.
Personally I don't think there needs to be a condition for "split", but an active action like issuing new shares. The only other possible trigger I can think of is that when number of shares drop to a point where 0.01% (that is a company has less than 10,000 shares, which is very unlikely in normal situation) can't consist 1 share, then there's reason to auto-split it.
In game mechanism wise, there should be limit about the ratio of split, and how much time between split, and of course not over the cap of 1 billion shares. And split needs to have some actual function in game, otherwise there's no point implementing it. In real world, split can increase the liquidity of the stock, since more potential investors can buy it now, so perhaps the in game split can increase the "velocity" of stock price changes, or changes with wider range to reflex the effect, in proportion to "white stocks" hold by "general public".
P.S. Since reverse split is automatic at such a low price, I don't think there is a chance of "accidental forward split" causing issues though.