How can I inject personal wealth into my company?

[FIIIIIG]

How can I inject personal wealth into my companies?

Both public or private companies. How can I do it? Can't figure it out.

Thanks!

[ryamamoton]

I believe you can buy your own stock, that way you can inject more money into your company

[cantdownloadit]

I find personal money is largely useless, you cant really invest it into new companies, you cant start new companies with it, if you buy shares in companies with it you don't get the same benefits - eg a controlling interest in a company doesn't actually give you any control

[velosraptorjesus]

I find personal money is largely useless, you cant really invest it into new companies, you cant start new companies with it, if you buy shares in companies with it you don't get the same benefits - eg a controlling interest in a company doesn't actually give you any control

Personal money can be used to boost the player's stake in their corporation. If you use the public company option in the start screen you will own less than 100% of the holding company that you are CEO of. You then spend time throughout the game attempting to boost your stake. Taking money out of the corporation into your own account is a method of doing this. One must remember the purpose of the game is to amass wealth for the player, not the corporation. (This is analogous to agency costs in IRL finance)

Here's an example: the salary one can pay the CEO in the headquarters screen is dependent on the profitability of the corporation. This is one way to take money out the player doesn't own 100%. For instance, if the player owns 25% of the corporation and pas herself a $10 million salary, the player will effectively pay 25% of the salary and the other shareholders the other 75%. Note here that there's no purpose to this salary if the player owns 100% of the corporation (and in fact this will incur individual taxes)

Two more examples of why player money matters:

1. Investment opportunities in the local market.

As a rule, the player cannot also be invested in the same company as the corporation. This is to prevent the player from buying a stake on her personal account then using the corporation to pump the price before the player dumps.

A classic example of a nearly risk free investment opportunity is publicly traded AI insurance companies. Due to the fact Global stock prices vary with the macro cycle, the earnings of insurance companies are highly cyclical. The AI companies tend to stockpile cash so solvency is not typically a concern. In a down cycle, publicly traded AI insurance companies will trade at deep discounts.

As we established, either the corporation can make the investment or the player can with her personal money. The decision for this depends on A) the relative size of the corporation's cash to the player B) the player's ownership of the corporation (25% for argument's sake). If the player has $100mm in cash, one should make the investment in her personal account unless the corporation has $400mm ($100mm / 25%) to allocate to the investment. The goal is to capture value for the player, not the corporation.

2. Timing purchases of corporation stock

There are a number of things that can cause timeable fluctuations in the corporation's stock. Large dividends from portfolio companies causes unnatural surges in price and purchases of private companies at high premiums causes dips. By holding money in the player's personal account, the player is able to make opportunistic purchases of corporation stock during the dips.

[FIIIIIG]

So there is no way how to inject personal wealth into my company if I already have 100% ownership/private company? Isn't injecting personal money one of the key points in private companies?

[CapitalismLabStory]

I recently found a trick posted here: https://capitalism2.com/forum/viewtopic.php?f=11&t=8613

But it only works for a public company not a private one.

[bycomet]

press 0 to pause the game first
then issue new shares to the public
and buy those new shares using your own wealth
I think this is an indirect way to inject into your company (transfer from you to public shareholders then to your company)

[FIIIIIG]

Sad that we have to do all kinds of workarounds in order to inject our personal money. Hopefully the devs will change it one day.