Post by greenenergycorp on Oct 31, 2022 18:52:53 GMT
My idea is to help incentivise investing in companies you believe in, rather than just which have a good rating, good interest rate, or are simply just available at the time.
At the moment, there is a saturated bond market during recession and very sparse bonds available during booms which doesn't benefit investors and people looking for investment. My idea is when asking for investment you forgo and give away certain information which isn't currently available. The actually numbers could be worked out later, but as an idea you give away the information in the accounting tab, possibly minus the 'cash receipts and disbursements' part for the last month, or couple of weeks. I don't believe this would be too hard to implement, maybe just a tick-box to say you agree to give away the information. This would help investors as they would be able to consider how risky they think the business is, rather than just relying on the current system, they could consider the market and how well run the business is. It would help people looking for investment as in recessions when it is currently hard to get investment, if the business is well ran it would be easier to raise capital.
The impact on businesses would be different depending on how well the numbers are, and how many bonds they currently have. For late-game players looking for investment it wouldn't be a massive advantage or disadvantage as people would still invest because of the size of the company and the security this brings to the investment. For late-game players investing in other companies it would have an advantage as they could create their own metrics to which them deem too risky or not. For medium-term or beginning players looking for investment it would benefit them as currently they may be deemed as a lower grade bond, and when people look at the size of the business by clicking on them it doesn't give them faith that it will be repaid and would rather invest in bigger, or less risky companies. For medium-term or beginning players investing in other companies it would not be a massive advantage or disadvantage, it may be more complicated depending on the implementation and how it looks, but if the old method of valuing is also there then they can use this along with generally judging the size of the business to deem the risk.
One side note is that it may cause companies to be more selective of when they need bonds, and if they want their accounting information to be public especially at the top 500 level. Because of the more public information people could suss out what the competition are doing and try and implement this within their own companies. For example if a top 100 companies has millions invested in bonds then smaller companies may look at this and consider investing more. Or if a top 100 company keeps a lot in stock smaller companies may consider keeping more in stock.
This change could also help bring changes such as compound interest that could be done in tandem, such as with a big update to bonds.
Thank you for reading, sorry it is a long one. Feel free to leave your opinions or questions.
Company name - Green Energy Corp
At the moment, there is a saturated bond market during recession and very sparse bonds available during booms which doesn't benefit investors and people looking for investment. My idea is when asking for investment you forgo and give away certain information which isn't currently available. The actually numbers could be worked out later, but as an idea you give away the information in the accounting tab, possibly minus the 'cash receipts and disbursements' part for the last month, or couple of weeks. I don't believe this would be too hard to implement, maybe just a tick-box to say you agree to give away the information. This would help investors as they would be able to consider how risky they think the business is, rather than just relying on the current system, they could consider the market and how well run the business is. It would help people looking for investment as in recessions when it is currently hard to get investment, if the business is well ran it would be easier to raise capital.
The impact on businesses would be different depending on how well the numbers are, and how many bonds they currently have. For late-game players looking for investment it wouldn't be a massive advantage or disadvantage as people would still invest because of the size of the company and the security this brings to the investment. For late-game players investing in other companies it would have an advantage as they could create their own metrics to which them deem too risky or not. For medium-term or beginning players looking for investment it would benefit them as currently they may be deemed as a lower grade bond, and when people look at the size of the business by clicking on them it doesn't give them faith that it will be repaid and would rather invest in bigger, or less risky companies. For medium-term or beginning players investing in other companies it would not be a massive advantage or disadvantage, it may be more complicated depending on the implementation and how it looks, but if the old method of valuing is also there then they can use this along with generally judging the size of the business to deem the risk.
One side note is that it may cause companies to be more selective of when they need bonds, and if they want their accounting information to be public especially at the top 500 level. Because of the more public information people could suss out what the competition are doing and try and implement this within their own companies. For example if a top 100 companies has millions invested in bonds then smaller companies may look at this and consider investing more. Or if a top 100 company keeps a lot in stock smaller companies may consider keeping more in stock.
This change could also help bring changes such as compound interest that could be done in tandem, such as with a big update to bonds.
Thank you for reading, sorry it is a long one. Feel free to leave your opinions or questions.
Company name - Green Energy Corp