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1862: Railway Mania in the Eastern Counties» Forums » Rules

Subject: Timing in buying token rss

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Paolo Russo
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Is the company buying 2-7 token when it is started (30% shares) or when it floats (50%)?

It changes the way to be able to spend enough not to have enough money to buy a Train and then refinance to buy a A train.
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Darin Stephenson
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Rule 6.4.5.2, which covers choosing the number of station markers for a non-chartered company, is a sub-heading under "flotation." So, when Rule 6.4.5.2 says "the director immediately chooses the number of station markers the company will have – between two and seven...," we've always taken that to mean "immediately upon flotation." I believe that is the intent of the rule. For example, it is clear that the capitalization stuff under 6.4.5.1 (e.g. the 100% cap for chartered companies) also happens upon flotation.
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Paolo Russo
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Good news for me: we assumed we must buy them already with your 30%, so it was often used to buy enough to deplete the treasury and then refinance a company
 
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Pete Goch
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Serpentium wrote:
Good news for me: we assumed we must buy them already with your 30%, so it was often used to buy enough to deplete the treasury and then refinance a company


It doesn't really matter as the company won't operate until it floats. Even if you bought only 3 shares, paid for the tokens and depleted the treasury it wouldn't operate during the OR and wouldn't have a chance to recapitalize until it actually floated.
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Paolo Russo
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It matters because 3*54€ means max 4 tokens, no more.
54€*5 means 6 tokens
 
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JR
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While a VERY picky rules lawyer could maybe argue that it isn't explicitly said so, we can reliably infer that tokens are purchased only after the company has floated (which requires 50% of shares be purchased). My reasoning for this is that the rules state that shares purchased from the IPO are paid to the bank. There is no disclaimer about non-chartered companies here because once the non-chartered corp floats, its certs move from the IPO to its charter and then it is funded for the shares sold thus far. It would therefore be impossible to pay for the tokens prior to 50% of shares being sold.
 
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Paolo Russo
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Maybe 2.1 can set this
Quote:
tokens are bought up-front from the company treasury as soon as it floats
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JR
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There you go.
 
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Pete Goch
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jrebelo wrote:
While a VERY picky rules lawyer could maybe argue that it isn't explicitly said so, we can reliably infer that tokens are purchased only after the company has floated (which requires 50% of shares be purchased). My reasoning for this is that the rules state that shares purchased from the IPO are paid to the bank. There is no disclaimer about non-chartered companies here because once the non-chartered corp floats, its certs move from the IPO to its charter and then it is funded for the shares sold thus far. It would therefore be impossible to pay for the tokens prior to 50% of shares being sold.



It is actually explicit.

Quote:
6.5.3 Starting a new company -

[...]

3. [...]The player takes the company charter, places the rest of the company certificates on it, and then pays the company three times the stock-market price for the director's share (not the bank).



The next section -

Quote:
6.5.4 Flotation

Flotation occurs when 50% of a company's shares have been bought from the IPO or company.

[...]

6.4.5.2 Station Markers

[...]These are to be paid for immediately...




The purchase of Station Markers is contained within the rules for company Flotation and not Starting a new company. So tokens are purchased immediately upon flotation.




 
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