Capitalism 2 and Capitalism Lab Forum

In the real world, a company issues stock and very rarely you hear of a company buying back it's own stock from investors. In the game, basically every game I play, most companies end up with the CEO buying out the whole shares of the other shareholders until he owns 100% again.

In real life if a company has 4Billion in cash, it won't waste them in buying out the stock, just so the CEO has a bigger slice of the company, but rather would use those 5billion to invest in other companies and/or assets that return a profit in the long term.


I suggest to make an option in the game settings for the player to choose one of these 3:

1) make the buy-back option exercised in rare occasions only by the AI
or
2) completely eliminate the possibility of AIs buying out the stock back
or
3) make a limit on how much % of a company's shares the AI can actually buy back (chosen by a slider)

Well, in fact in real life companies now spend billions on buy back of their stock. Currently they spend more money on stock buyback than on dividends.

In the real life their rationale is to drive the stock prices up to please the shareholders.

I think that if it´s the CEO buying the shares then it´s not "buybacks". The CEO is using his/her salary to buy an extra piece of the company they manage.