Don't Waste Your Money
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by Mickale
Hello. I just saw several disturbing offers on the forums for shares of companies.
Here is one: http://www.erepublik.com/en/forum/topic/111848/investors-needed/1
People... People out there are always trying to rip you off. They offer you a deal that may seem nice, but if you run the numbers, you'll find out how much they are truly stealing your money for nothing in return.
Also, if you ever invest in any of these crazy agreements, make sure you have a contract signed by both parties before anything is transferred. It would be such a shame to lose all your hard-earned money to a rip-off artist.
Now, just for the sake of example, let's say an American company is selling out shares for 0.49 USD. He is offering 100 shares, each 20 USD. Now, he promises to give you a % of his weekly profits, by how much % of the company you own. So, to make any money, you'll need to buy more than one share. A good deal no?
NO.
Let's say you want a small share, because you're unsure about the return, and you buy 10 shares. Well, you just spent 200 USD, but with their inflation, that's about 132 GBP. Keep in mind, you'll be getting the return in their crappy money.
Now, let's say you were a big-time investor, and wanted to buy all 100 shares. That's 2000 USD. If you had that many, you could easily buy about 35 gold, and found your own company. But, instead, you'll own 49% of someone elses. Joy.
The lesson: Watch what they say and keep a calculator handy, don't let promises overrule the numbers, and always make sure you obtain a reasonable contract, which you must also read carefully.
With that said and done, also be aware of q5,4,3 objects. These things can be highly over-priced and should'nt be bought. Why buy a q5 gift, when you can buy 5 q1 gifts for a lot less?
With that in mind, q5 weapons are outrageously over-priced, and also shouldn't be bought because of it. Don't feed the monstor of your pocket!
So, after reading this, consider yourself educated (partially) in the field of money-saving.
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also: don't touch the stove.
Har Har...
Agreed.
Ok... is there anything legally binding when making a contract?
is it possible at all to make a contract in Erepublik?
please let me know
Voted + Subscribed 🙂
Excuse me all my shares were calculated on the forcasted month ahead. I know all of my shareholder very well and we all agreed on the long term prospects and rewards.
But it is a rip-off...
I disagree about Q5 weapons being over priced.
They are an entirely different product than Q4.
Its not like a gift where all wellness is equal.
Each damage isn't equal, because you can only do so many attacks each day. Therefore the more damage you do should be worth more, not just a linear increment, but something with a more curve.
Regarding your link to the article,
I'm Kalyse and Laykes Group in that threat and completely agree.
The persons numbers are fundamentally flawed.
I hope he responds to my post where I throw the numbers at him.
He is valuing his company 4 times what it is worth.
You are looking at about 10 months JUST to get your money back.
Its a very bad deal.
Mikael :
I would like your input on this investment however.
http://www.erepublik.com/en/forum-post/1209899" target="_blank">http://www.erepublik.com/en/forum-post/1[..]9899
That is one that I have posted.
Mikael : I give you permission to article me 🙂
Even advertise it 😛
do not run around with scrissors
you know what they say:
Its all fun and games, until someone loses an eye
I suppose you do have a point on q5 weapons - but then again it all depends on where you you are, taxes, ect. But I am guilty of buying one and I honestly didn't care for it. (though if your country is being taken over - I suppose it's worth it)
Nice one! Voted. I would subscribe again but I already did.
I read the advertisment and said to myself "Okay." and read it.
Am I smarter now?
Is it really possible to buy shares in game, or is it unofficial?
it is official, you will have to look into it more though, and make sure you sign a contract.
sellinq q2 iron company with 1 licence.pm
with 35 gold, you can have your own company. if you have a 10% of a company with 35 gold, that means you have invested in a Q5 company
awesome article.
why buy q5 gift if you can buy 5x q1 gift for less? Because you can use only 10 gifts/day.
"why buy q5 gift if you can buy 5x q1 gift for less? Because you can use only 10 gifts/day."
That's not how it works. If you use Q5 gifts you can only use TWO a day. It's not 10 gifts, it's 10 wellness max.
Purely based on numbers it may seems like a bad deal, sure you COULD start your own company for the price of half theirs but that would make you the GM instead of just a share holder. As the GM you would be responsible for managing employees, setting prices, wages. This could be alot more hassle than most people want, as a share holder you get to sit back a receive your money every week for no work.
A long term investment is an already established company may also be preferred to starting another company that could possibly fail.
Overall I would say that the investment isn't unreasonable, for someone with no business sense but alot of gold it could provide long term cash flow without the stresses of running a company.
"Purely based on numbers it may seems like a bad deal"
Yes, because it is.
Very good article, voted.