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Steam over Holland» Forums » Rules

Subject: Dividends rss

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George Shafer
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If a company sells shares to the open market, does it have to pay part of its profits to the bank when it creates a dividend?

ex. A company has 5 shares in the open market and 3 issued to stockholders. It issues a $100 dividend. $30 goes to the shareholders, and $50 goes... where?

The rules aren't specific about this, so we just let the companies keep the money.
 
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Ed James
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The total dividend is divided amongst all shareholders.

For your example, a dividend of 100 would break down like this:

£50 to the open market shareholders (the Bank)
£30 to the private shareholders
£20 remains with the company.

Your example is actually illegal in Steam Over Holland. The percentage of shares sold to the Open Market may not exceed the percentage of shares sold to private investors.


 
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George Shafer
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Oops.

I've only played once, so it's easy to make that kind of mistake with a rules question.

Thanks for the help.
 
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H-B-G
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mudhoney wrote:
Your example is actually illegal in Steam Over Holland. The percentage of shares sold to the Open Market may not exceed the percentage of shares sold to private investors.




I've only just got this and am just reading the rules (so I may have missed something) but I don't see how this is necessarily an illegal situation. The rules state that a company may not sell more shares than those in the hands of investors on it's turn, but that doesn't seem to prevent it doing so over more than one turn.

Also the shares in the market could have been sold by players I don't see any limit on them selling other than the 50% maximum.
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Ed James
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DaveD wrote:
mudhoney wrote:
Your example is actually illegal in Steam Over Holland. The percentage of shares sold to the Open Market may not exceed the percentage of shares sold to private investors.




I've only just got this and am just reading the rules (so I may have missed something) but I don't see how this is necessarily an illegal situation. The rules state that a company may not sell more shares than those in the hands of investors on it's turn, but that doesn't seem to prevent it doing so over more than one turn.

Also the shares in the market could have been sold by players I don't see any limit on them selling other than the 50% maximum.


Good points. I've just checked the rules and I agree with your interpretation.
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