Entropia Investment Fund implements a 1:5 share split

[Fund Manager]

We have split all existing shares with a factor 1:5. That means that every investor now has 5 times more shares than before. Each share is worth 1/5 or 20% what it was before.

It is likely this share split shall increase the number of investors in the future. We hope that a lower share price will be more attractive to the community.

The new certificates have a base value of 100 PED instead of 500 PED as in the past. A totally new investor must invest at least 500 PED. This is essential to keep the administration of the fund manageable.

[Swede]

And when are you gona be in the office so I can buy more shares?

[Fund Manager]

Any comments on our share split?

[mastermesh]

Why don't you allow people who are new to the eif to buy one share at time instead of forcing them to buy 5 just to start out with? If this is really suppossed to reflect real life stocks, why make people pay 5 if they only want one - this crazy rule is bad because it also makes those with the stock now have 500% more trouble selling since they'll have 5 shares for each of the 1 share they used to have..... In the beginning you had an offer to buy back shares + interest made. That seems to have changed since you bought the LAs and shops. I realize why that changed, since the TT value of a shop and LA is zero... but it makes this very great idea, which is the eif, in to a very, very, very unsafe thing to get in to since there's zero promise you'll ever get 100% of your original buy in value back... just the taxes and stuff paid back in dividends... in other words, you've made something that originally was a minumum of a 90 day deal in to a 10 year + deal since dividend payments are roughly 10% of what original buy in amount was! That's insane especially since some others are soon going to be having similar funds built in the near future, such as DWIF (developing worlds investment fund), and even the STTS (Smart Trade Terminal Service) which pays tt values to buy things and then later gives back 70% or so of the profits after a sale is made...

[Gluepot]

The split is a nice idea, but.... Forcing people to invest a minimum of 500 ped kind of defeats the purpose I think

[The Ripper]

Ildnt normally comment.... but I have to say I think an initial "minimum" buy in for the shares is a good idea..... if this REALLY was supposed to be like RL shares then there would be a lot more costs than just the pure $50 of shares bought.. for example it typically costs ~£10(uk) (~$18) to buy any amount of shares through online dealing. I have absolutely no idea how EIF is run but I could imagine just creating new login accounts, certificates of share ownership (or w/e) and any other administration for new sh's, could take quite a bit of time....... which if you think about it would hardly be worth it for an extra 5 quid XD

GL

Rip

[EarlVonKippler]

i appreciate the minimum buy in. for many of the reasons ripper brings up. i think it is useful to seperate the wheat from the chaff. the point of this fund is to create long term growth. this isn't day trading. the EIF isn't designed for someone to drop 100 peds for a week or two and turn around and demand it back cause they need it. the fund grows because the money stays to be used. i treat it like any regular investment and invest what i can afford to not use for a long time.

Originally Posted by Gluepot

The split is a nice idea, but.... Forcing people to invest a minimum of 500 ped kind of defeats the purpose I think

maybe for new investors. however current investors are very happy about it. just like real life stock splits once you are invested in the fund you can buy smaller quanities. however, we all start with the same intial minimum buyin. regardless of stock quanities.

[mastermesh]

we all start with the same intial minimum buyin. regardless of stock quanities.

Nope... new people would have to spend substantially more than initial buy in people to get same number of shares... which is yet another reason the split makes zero sense... as there is no max number of shares... "share value" is just some random number based on random values and estimates of market values, and I'm assuming those estimates are based, in part on some things that have tt value=0... I'm really, really, really hoping DWIF is more well organized when it comes in to existence. I've emailed the guy in charge of it and got an email back that they have something like an apartment shop already but aren't ready to go public mainstream in eu just quite yet... Here's hoping for a bright future.

I'd like to buy in to EIF and originally thought it was brilliant but didn't have the peds to do it last year... now that I have the peds to get in, I am scared to because the promise to buy back is gone... and there's no max number of shares... so the market's wide open to allow more and more people in, buing "new shares" but there's no real way for those already invested to "sell" or any reason to since the Fond Manager can sell all new people brand spanking new shares... if people have ever "sold out" of the fund and gotten your peds above your initial buy in after the LA buys, I'd be interested in hearing how it went... As it stands now, based on what little public knowledge I've read about it (because part of your forum is blocked from general public, etc.) it doesn't look like it's possible for anyone to get out once they are in, at least not without waiting several years to just get initial buy in money back off the dividends and break even, unless there's some magical part of the formula in there somewhere I'm missing?

[Joat]

I think this is a good idea, this way, I might buy more now.

[Joat]

Originally Posted by mastermesh

Why don't you allow people who are new to the eif to buy one share at time instead of forcing them to buy 5 just to start out with? If this is really suppossed to reflect real life stocks, why make people pay 5 if they only want one - this crazy rule is bad because it also makes those with the stock now have 500% more trouble selling since they'll have 5 shares for each of the 1 share they used to have..... In the beginning you had an offer to buy back shares + interest made. That seems to have changed since you bought the LAs and shops. I realize why that changed, since the TT value of a shop and LA is zero... but it makes this very great idea, which is the eif, in to a very, very, very unsafe thing to get in to since there's zero promise you'll ever get 100% of your original buy in value back... just the taxes and stuff paid back in dividends... in other words, you've made something that originally was a minumum of a 90 day deal in to a 10 year + deal since dividend payments are roughly 10% of what original buy in amount was! That's insane especially since some others are soon going to be having similar funds built in the near future, such as DWIF (developing worlds investment fund), and even the STTS (Smart Trade Terminal Service) which pays tt values to buy things and then later gives back 70% or so of the profits after a sale is made...

I guess there are room for several different types of funds.
This one fits those that do "investments" without timetable.