A stock market insider trading loophole

[counting]

I've always known players can make huge profit very quickly with current stock market mechanism. And this insider trading loophole is the one that combined two exploits to let players to gain insanly amount of cash very early on (if the option of alternative stock sim is off). I've tested it both at 2.5.14 and 2.6.11.

The two exploits are
1. Issuing shares to parent company can be done infinite times, even at speed paused, and even when parent company's cash goes into negative.
2. When two or more of player's subsidiaries owns the same target companies' share, they can buy each other's shares and inflate the target company's stock price (this is prohibited if alternative stock sim is on)

The general idea is to focus on a target company, and manage to allow this company's cash goes to negative when its subsidiary over-issuing shares to gain enough cash. And with the help of another direct controlled company, the insider trading can inflate this target company's stock price sky-high.

1. Find 3 small corporations with over 50% of public shares or more left. Prepare enough cash (either by issuing or borrow) that can buy over 50% the first Corporation-A's shares. Pause the game.
2. Corporation-A issuing shares to player's corporation till been controlled over 75% shares, and Corporation-A has enough cash that can buy other two corporations' stocks, one over 50% and another the amount to buy out all its public shares (and preferably some more as reserve). Since the game is pause, player corporation's cash can temporarily go into negative.
3. Corporation-A use this new huge cash to buy over 50% of Corporation-B's shares.
4. Corporation-B issuing shares to Corporation-A to gain enough cash that can buy another Corporation-C's shares over 50% and left Corporation-A with some cash (the value about 5% to 10% of Corporation-B's shares)
5. Corporation-B buys over 50% of Corporation-C's share. Now players' controlled A, B, C three corporations.
6. Corporation-C mass issuing shares multiple times to Corporation-B till it reaches 90% to 95% shares (or even higher) controlled by Corporation-B. Corporation-B's cash temporarily goes into negative. And Corporation-C gains a massive amount of cash to be used for inflating stock price with insider trading.
7. Corporation-A uses its remaining cash to buy out all Corporation-B's public shares.
8. Corporation-C buys Corporation-B stock from Corporation-A till Corporation-A holds just above 50% of Corporation-B stock (be careful, otherwise player's corporation will lose of the entire subsidiaries chain).
9. Corporation-A use all the cash (from previous C-to-A stock trading) to buy Corporation-B stock from Corporation-C. This is when Corporation-B stock is artificially inflated by insider trading between Corporation-A and Corporation-C. Repeat step 8 and 9 till the price is high and Corporation-C's huge sum of cash is transferred to Corporation-A's hand.
10. Corporation-B sells about 10% to 15% of the Corporation-C stock to the public to drop Corporation-C's stock price.
11. Corporation-A uses its huge cash to buy Corporation-C stock now opened public share once. Then Corporation-B sells its Corporation-C stock once to keep the price down, repeat until Corporation-B no longer owns any Corporation-C stock. Use this method to transfer Corporation-C's ownership under Corporation-A.
12. Corporation-A and Corporation-C both sell their Corporation-B stocks, since its price is very high, Corporation-A and Corporation-C gain huge amount of cash.
13. Corporation-A merger with Corporation-C to gain its cash.
14. Player's corporation merger with Corporation-A to gain huge amount of cash. At this stage the cash gained is more than enough to buy back all of the player corporation's public shares and allow 100% total control, even pay back loans. Unpause the game, and Corporation-B goes bankrupt.

This is probably one of the more elaborate stock market loophole, and can all be done during game pause. Although open alternative stock sim will block it, but a lot of time alternative stock sim also prevent some legit stock trading. So perhaps a patch to fix the 1st exploit that can excessively issue shares to parent corporation, even after cash is negative, might be a good way to start, since it's literally making cash out of thin air.

[katie123]

I've always known players can make huge profit very quickly with current stock market mechanism. And this insider trading loophole is the one that combined two exploits to let players to gain insanly amount of cash very early on (if the option of alternative stock sim is off). I've tested it both at 2.5.14 and 2.6.11.

The two exploits are
1. Issuing shares to parent company can be done infinite times, even at speed paused, and even when parent company's cash goes into negative.
2. When two or more of player's subsidiaries owns the same target companies' share, they can buy each other's shares and inflate the target company's stock price (this is prohibited if alternative stock sim is on)

The general idea is to focus on a target company, and manage to allow this company's cash goes to negative when its subsidiary over-issuing Stock Trading Secrets to gain enough cash. And with the help of another direct controlled company, the insider trading can inflate this target company's stock price sky-high.

1. Find 3 small corporations with over 50% of public shares or more left. Prepare enough cash (either by issuing or borrow) that can buy over 50% the first Corporation-A's shares. Pause the game.
2. Corporation-A issuing shares to player's corporation till been controlled over 75% shares, and Corporation-A has enough cash that can buy other two corporations' stocks, one over 50% and another the amount to buy out all its public shares (and preferably some more as reserve). Since the game is pause, player corporation's cash can temporarily go into negative.
3. Corporation-A use this new huge cash to buy over 50% of Corporation-B's shares.
4. Corporation-B issuing shares to Corporation-A to gain enough cash that can buy another Corporation-C's shares over 50% and left Corporation-A with some cash (the value about 5% to 10% of Corporation-B's shares)
5. Corporation-B buys over 50% of Corporation-C's share. Now players' controlled A, B, C three corporations.
6. Corporation-C mass issuing shares multiple times to Corporation-B till it reaches 90% to 95% shares (or even higher) controlled by Corporation-B. Corporation-B's cash temporarily goes into negative. And Corporation-C gains a massive amount of cash to be used for inflating stock price with insider trading.
7. Corporation-A uses its remaining cash to buy out all Corporation-B's public shares.
8. Corporation-C buys Corporation-B stock from Corporation-A till Corporation-A holds just above 50% of Corporation-B stock (be careful, otherwise player's corporation will lose of the entire subsidiaries chain).
9. Corporation-A use all the cash (from previous C-to-A stock trading) to buy Corporation-B stock from Corporation-C. This is when Corporation-B stock is artificially inflated by insider trading between Corporation-A and Corporation-C. Repeat step 8 and 9 till the price is high and Corporation-C's huge sum of cash is transferred to Corporation-A's hand.
10. Corporation-B sells about 10% to 15% of the Corporation-C stock to the public to drop Corporation-C's stock price.
11. Corporation-A uses its huge cash to buy Corporation-C stock now opened public share once. Then Corporation-B sells its Corporation-C stock once to keep the price down, repeat until Corporation-B no longer owns any Corporation-C stock. Use this method to transfer Corporation-C's ownership under Corporation-A.
12. Corporation-A and Corporation-C both sell their Corporation-B stocks, since its price is very high, Corporation-A and Corporation-C gain huge amount of cash.
13. Corporation-A merger with Corporation-C to gain its cash.
14. Player's corporation merger with Corporation-A to gain huge amount of cash. At this stage the cash gained is more than enough to buy back all of the player corporation's public shares and allow 100% total control, even pay back loans. Unpause the game, and Corporation-B goes bankrupt.

This is probably one of the more elaborate stock market loophole, and can all be done during game pause. Although open alternative stock sim will block it, but a lot of time alternative stock sim also prevent some legit stock trading. So perhaps a patch to fix the 1st exploit that can excessively issue shares to parent corporation, even after cash is negative, might be a good way to start, since it's literally making cash out of thin air.

thanks..I think trading is quite attractive to the people who want to earn more money in few days but it is quite risky game,sometime we face more difficulties due to greediness.