Costs Associates with Purchase and Sales of Stock in Empire.Kred.
Empire.kred is a virtual stock market game. In this article I will discuss issues associated with the purchase and sale of shares.
A member's profile at empire.kred starts upon signing up at the site with a share price of 10. Over the next six days only up to 400 shares can be acquired by another player. On the seventh day the 400 share limit is removed and a player can acquire additional shares, also known as a bigger piece of the pie. The acquirer must either pay real money or eaves to increase their limit in 100 share increments up to 5,500 shares. The cost to acquire a bigger piece of the pie increases, too.
In addition to the cost to acquire the shares and the cost to increase your share limit, there are also commissions to buy additional shares. These commissions increase on a sliding scale from 5% to 10% of the value of the shares acquired. The more shares you own or acquire the higher the sales commission percentage. So if you own 100 shares and acquire another 100 shares it costs you 5% of the sales price. However, if you own 1,500 shares and acquire another 100 shares it costs you 10%, or twice as much. This becomes a disincentive for shareholders to acquire more shares.
What if you sell shares? A similar sales percentage is calculated and I've seen a 13% sales commission on sales beyond 2,300 shares. It may even go higher in the higher echelons of ownership.
If you buy or sell 2,000 shares the transaction screen will show a 10% commission rate. It is not clear to me whether that is the rate for all shares bought or sold, or if the break points are honored. I recommend buying or selling in steps to get the benefits of the various commission rates which increase at 500, 800, 1,300 and 1,500 shares on the buy side.
You can see your history of purchases and sales of a profile unless you sell your entire position. This can help you evaluate your purchase prices, fair market value and gain or loss.
Holding shares allows you to obtain daily dividends in an individual. The daily dividend rate is shown but no trend line is available as there is for share price. You can see a chart of high dividend payers to help you evaluate profiles if you believe dividends are important to you. Dividends received in the form of eaves can enable you to use them to acquire more shares or create missions.
More information is available on the company help screens to learn more about buying and selling shares.
I enjoy playing the stock market game at empire.kred to evaluate positions based on share price and dividends. If you would like to join me there , here is the link: https://www.empire.kred/CPAJOE?t=ezmic9th