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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

584.0. "friendly games" by --UnknownUser-- () Mon Oct 11 1993 15:11

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584.1WEEKS::HALLYBFish have no concept of fireMon Oct 11 1993 16:4033
>    anyone have a somewhat simple way to estimate the value of the shares?
    
    two words:  Auction market.  
    
    Just like the NYSE, a share is worth whatever anyone will pay for it,
    and no more.
    
    So what you do is float some shares with real paper, a la:
    
    	This Certificate entitles the bearer to receive
    	$10 from Joe Ciampa if and only if John Doe becomes
    	legally married in any U.S. State or Territory
    	on or before April 1, 1994.
    
    				signed	____________________
    					Joe Ciampa      Date
    
    Put all sorts of engraving and clipart around the side and you've got
    an instant capital-generating machine.  Of course you could do this
    electronically, too ("unregistered" vs. "registered" stock :-), it all
    depends on your preference.  I think the key is stating the value of
    the shares on the certificate, the "buying price" then depends on the
    buyer's estimate of the odds.
    
    You might make, say, 20 copies of the above certificate and sell them
    from time to time whenever you got a bid you liked.  You'd never HAVE
    to sell.  Once somebody buys a "share" they of course can turn around
    and sell IT to anyone so you end up creating competition for yourself.
    
    Long about March the above certificate would either be cashed in or
    selling for a few pennies.  Watch out if John Doe corners the market!
    
      John
584.2SAHQ::ROSENKRANZGo ask Alice....Mon Oct 11 1993 17:572
    It would be interesting to see what kind of investment rating 
    Standards and Poors would place on this kind of "investment paper".
584.3Securitizing marriageNOVA::FINNERTYSell high, buy lowMon Oct 11 1993 18:5918
    
    well, you _could_ sell notes instead of shares...  redeemable for
    (say) $1000 if on 30-Mar John Doe (Dow?) is single, and $0 if he is 
    wed.
    
    Then you might see some active speculation...  and generate 
    some cash for the happy couple as well (assuming John is 
    responsible for delivering on the note, it might be interesting 
    to see how much "risk" he is willing to take on).
    
    Long term marriage futures might be another interesting twist.  Note
    that since marital assets are not normally distributed, valuation may
    be difficult.  
    
    Needless to say, John should be prevented from taking short positions.
    
    p.s.  John needs to be covered for events beyond his control.