1817 company sales note

In simple laymen terms,

[b]Lidqudation: the president screwed up the company[/b], so he is responsible for all the crap (loans) he did, take away all the remaining money and the loans from the mat. The bank make the first $0 bid so the company is always sold. The reason is the company has run out of credit so everything sellable must go, the bank have enough of the company. Auction everything in one batch. The money gained is used to repay loans (must).

If the previous president cannot make up of the sin he made, auction the president himself. (bankruptcy)

[b]Friendly Acquisition: or in laymen terms the company is sold at the current spot price.[/b] Everything is sold. If no bid is made the company is taken back. But if one bid is made, then all shares in the company is liquidated at current stock price. In another words, if the company is sold at the current share price, the company is only sold at the current price multiply by the number of shares sold. For instance, if there is 3 shares outside of the company (on player's hand or in bank pool) out of 5 shares at price of $50, one is only paying $150 despite the bid is made at $250. Since when bidden, the remaining 2 shares in the company would immediately be sold and become $100 to be place in the company. Those money when sold, would be first move into the buyer's company, then be paid out. So that $100 would not matter unless it is sold at a price higher than current price. If the bid becomes $300, those shares would not suddenly become $60 spot price, since it had been sold at $50 already.

The shares only matters in terms of percentage (%) to split the money made from the auction.

Friendly sales is extremely useful and under-used, commonly used in the follow situations:
1. get rid of the company at current price to remove the obligation to get a train for the company, right before or after a train rush.
2. to force the few shorter to clear their position at the current price.
3. to squeeze out cash from your company, or take a loan and move the company to you at the company's name.
4. some of the composition of above.

[b]Hostile Acquisition[/b] (grey spaces): [b]the company is simply at a bad state. Or in laymen or common financial term [u]Suspension of trade[/u][/b] No shares could be sold or bought, or shorted, since at the current state it has no value. At the penultimate of the M&A stage anyone could make a bid of $10, then the company would be sold. Almost like friendly sales, once bidden, the shares in the company would be sold immediately. However, unlike friendly sales, there is no price. Hence the price would be zero. The procedure is exactly like friendly sales, but just the share price is zero. And such auction is always done and forced. Unlike friendly sales that it is elective.

When the company is sold, the money gained is also split in terms of percentage (%) in shares held.

The grey suspension zone looks like hell, but it is still extremely useful when no one could afford all your company loans. In Hong Kong terms, a company with negative asset, who just could barely afford the interest. So you could make a company full of fucking loans and drives the interest all the way up to $60. And then leave that trash company there. Want it? Take it. I don't care.