FINANCE | RETURN TO FRONT PAGE

BOURSE
Shares and bonds can be traded on the bourse. Families, associations, and states can all own and trade these securities. For an entity to be able to trade a share or bond, the family that controls the entity must have an office in the state from where the share or bond originates. Families start out with an office at their home state. The further away a state is from a family's home state, the more expensive it is to purchase an office there. The only ways to receive financing off the bourse is through the moneylenders or gifts from families. These are the only option for families as they can't issue bonds or shares.

MERCHANT SHARES
These are the shares of associations, and have a value based on the association's net worth. Shareholders can sellback a share to its association any time for its book value per share. If the association does not have sufficient funds the shareholder will only receive a portion of its value, or nothing at all. If an association has a negative net worth it can collect 1 coin payment per share per year. If a shareholder can't make this payment they will be forced to forfeit 1 share for each coin they are unable to pay. Shareholders can also receive dividends, and will automatically receive a dividend payment if its association's treasury exceeds the total cost of a ship and home good after the selling of a good by the association.

INDUSTRIAL SHARES
These are abstract shares of a state's industry, and have a value based on the state's infrastructure. Industrial shares can be bought as sold at any time, but do not pay dividends.

BONDS
When an association or state issues a bond they must specify the price, its original principal, annuity, and years until maturity. The annuity will add to the principal of the bond each year. Bondholders can redeem coins from the issuer once a bond matures as long as the issuer has the requested funds. Issuers can repay any amount of a bond back at any time. Once a bond is completely paid off it is void.

  PRINCIPAL
  Amount of coins that are redeemable.

  PRICE
  Cost to purchase.

  ANNUITY
  Number of coins added to the principal each year until the entire bond is repayed or redeemed.

  MATURITY
  The year it can be redeemed.