Jonathan Hack
Canada
Regina
Saskatchewan
flag msg tools
Hi, my wife and I are just starting to figure out this game. We've played the short rules version, and love it, but are now trying to figure out the long version before we try to get our friends hooked on it as well

However, the one thing that really confuses me right now is this section on page 16 of the rule book under the heading Starting A Company:

Quote:
-Places the company's share value token on the appropriate starting value box in the red outinged area ($68, $72, $76, $82, $90, $100) on the stock market display...


How do we determine what the "appropriate starting value" is for the company? Is it written somewhere? or does the initial purchaser decide how much to pay out, and thus determine the initial value?

Thanx for any help you guys can offer.

Blessings on you!
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
J C Lawrence
United States
Campbell
California
flag msg tools
designer
badge
Avatar
kakerjak wrote:
How do we determine what the "appropriate starting value" is for the company? Is it written somewhere? or does the initial purchaser decide how much to pay out, and thus determine the initial value?


Whoever buys the director's share gets to set the par value (what price the bank will that company's shares at). It is a set of trade-offs. During the rest of the game the value of teh shared may go up or down, but no matter what those first 10 shares will when bought from the bank will cost that par value. The higher the par value:

-- The more money the company will have in its treasury. The lower the par the less money in the treasury.
-- They higher its token will be on the stock chart and thus further from the ledge, yellow/brown zones etc. (If the company is going to be pump'n'dumped this might not be a good thing)
-- The larger the value jumps will be for every payout and the larger the penalties for every withholding. (If you have great routes, go for it!)

and of course:

-- The more expensive and difficult it is to buy shares and float the company.

Additionally companies operate in order of descending stock price. Sometimes it is critical to open a new company at a particular par in order to have it operate in a specific order, for instance so that it can buy the right trains, build track somewhere before another company etc. Just as it can be very important to control who has Priority at the end of a Stock round, it can also be very important to make sure that your newly floated company starts its first OR at just the right point in the turn order.

Also, setting the par high can keep your competitors away from buying heavily into your company (every share they own removes 20% of your delta with the company).
4 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Jason Gische
United States
San Carlos
California
flag msg tools
Avatar
mbmbmbmbmb
JC has it pretty well nailed.

Typically, in the early game, you'll want to set your par values on the lower side for a couple of reasons.

- You need to be able to afford to float the company, almost always by yourself. (Note that this doesn't really apply to Frisco, which floats with only the president's certificate sold, and the par value is set independent of what you actually paid for the certificate.)
- In the early game, it is more important to have more shares than it is to have high priced shares. (Remember, the share price is only important to the bottom line at the end of the game.)
- There isn't a dire need for the company to have a huge starting capital.
- There is plenty of time to get the share price up high.

In the mid-to-late game it is much more important to balance the competing factors of

- You want a high par value to have a high stock price, and because you need a lot of money in the company coffers to afford the big trains.
- You may need to have the company go in a specific order, so sometimes you have to open it at a lower price to ensure it goes after a different company.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Front Page | Welcome | Contact | Privacy Policy | Terms of Service | Advertise | Support BGG | Feeds RSS
Geekdo, BoardGameGeek, the Geekdo logo, and the BoardGameGeek logo are trademarks of BoardGameGeek, LLC.