Re: [Rails-devel] 1856: immediately selling purchased shares permitted (bug 2968764)

[Aliza P. <ali...@gm...>]

(1)
I hold one GW share.  IPO price is $100, current price is $150.

On my stock turn, I buy one GW and then sell two, spending $100 and
receiving $300.

This kind of thing is legal in 1830 but not in 1856.

(2)
Imagine that we are sitting at my kitchen table playing 1856.  With my
left hand I purchase a GW share.  While I am still holding that share
in my left hand, with my right hand I sell one or more GW shares that
are sitting on the table in front of me.  This is legal in 1856.

Does that make the distinction clear?

(There's a further subtle distinction:  If the only certificate in
front of me is the 20% President's certificate, I can buy a share with
my left hand, and then with my right hand peel off one imaginary share
from the President's cert and sell that, letting the 10% in front of
me and the 10% I just bought magically rejoin into the President's
cert.  This is not obvious from the text of the rules but has been
clarified in addenda.)

The net effect is fairly important:  If I am trying to take advantage
of arbitrage opportunity, or just to trash another player's stock
prices, I need to assess the risk that a share I buy may be worth less
than what I paid for it by the time I have an opportunity to sell it.

 - Aliza

On Thu, Mar 11, 2010 at 11:38 AM, Chris Shaffer <chr...@gm...> wrote:
>> I understand the quoted rule from the rulebook that I am only
>> allowed to sell
>> the number of shares which I had in my portfolio at the beginning of
>> my turn
>> and not the one I just bought. Next turn I am free to sell that
>> additional
>> share/certificate.
>
> Correct. You might more properly say "the number and type of shares..."
>
> --
> Chris Shaffer
>