Why aren't they dumping stock?

[jondonnis]

So started a new game with the new build. Just testing stuff out. Trying to get my brand up so spending stupid amounts on advertising in stores making me lose loads of money making my stock tank. So why isn't the AI dumping the stock? Has this been designed to stop people exploiting the stock market? Surely if they saw my company failing when it was at £180 a share, like in the real world, they'd all start dumping the stock, but it's down to $20 and still none of them have dumped any stock.



This wasn't what I was going to test but spotted in while playing.

UPDATE - Took it to get to $15 then they started to dump stock.

[counting]

In my experience different focus AI corporation react differently with stocks, persons without company also different. A lot of time, the price isn't the determine factors. AI tends to sell other company's share when it's absolutely necessary, like AI themselves are losing money, or target stock corporation is losing market capital (your corporation may lose profit, but it doesn't mean your capital is shrinking, to trick AI to sell, you need to make assets shrinking). Sometimes, persons can hold on to a stock for a very long time regardless situations, unless it's a prolong ressesion. Usually the share will start clearing out when resseion begins.

[jondonnis]

Later on, when I stopped the advertising and profits rose again, I did the same trick. The shares were a lot higher this time and the moment they got down about $100 from what they were they all started dumping a lot quicker maybe they saw how much they'd lost in value last time and thought "Not losing it all again, I'm dumping early this time".

So yeah, I guess the AI reacts differently in different situations.

[azxcvbnm321]

Your company is also trading below book value (price/book less than 1), this mean that, theoretically, your company could liquidate all of its assets and that would bring in more money than the market capitalization. If a person could buy up all the stock without driving the price up, then they could make a profit by doing so and liquidating the company. Of course this is not possible, but low price/book is one good reason why others are not selling the stock.

[counting]

Your company is also trading below book value (price/book less than 1), this mean that, theoretically, your company could liquidate all of its assets and that would bring in more money than the market capitalization. If a person could buy up all the stock without driving the price up, then they could make a profit by doing so and liquidating the company. Of course this is not possible, but low price/book is one good reason why others are not selling the stock.

I don't think AI make stock investment decision based on P/B value much. In my experience, AIs often sell other corporations' stocks during crisis and recession (at which time P/B ratio is the lowest). During booming and expansion (P/B ratio is very high), AIs hardly sell any stocks without good reasons (like AIs are lacking cash themselves, or target company is sinking assets fast). Only those stock focus AIs trade stocks more "intelligently", but I think AI is mostly observing target stocks' market capital changes.