empire avenue solutionsEvery night, usually between 4 and 7 AM Eastern time, Emipre Avenue’s squirrels go to work calculating dividends and network scores for all EAv accounts. As a part of that process, every user’s share price is tweaked. This causes lots of problems and frustration and should be eliminated.

Example 1

Nearly every one of us at one time or another as woken up to find our share price down 0.5e or more. Sometimes it seems as if there’s no logical explanation for it other than perhaps some of the squirrels were up late doing shots. If that’s not bad enough, market-chasing share holders see your share price is down, are afraid that your share price is going to continue to drop, so they sell their shares, which causes it to drop further, creating a downward spiral. You feel frustrated and helpless.

Example 2

On the other hand, I often see new users whose share price is blown way up because of the share price adjustment. For example, (e)BRANDONRAPER signed up for EAv yesterday. As people invested in him, his share price increased nicely to about 26 on his first day. Then the squirrels went to work. They calcuated his dividned to be 0.22e/share. If they had left his share price alone, his yield would have been 0.22 / 26 = 0.85%. Which now days is a pretty good yield.

However, the squirrels adusted his share price up 7e to 33e. On top of that, lots of market chaser saw that gain and invested, so now his share price is up to 37e and his yield is down to 0.59. That’s not particularly good, which sets him up for a big drop in a day or two.

Both of these frustrating situations would be eliminated if the nightly share price adjustment were eliminated.

Base Shareprices Exclusively on Outstanding Shares

The underlying reason for the nightly adjustment is because share prices are based on 2 things – number of outstanding shares (the number of your shares other people have bought) and social media. See http://empireavenue.com/p/evaluate/empire Your share price changes every time someone buys or sells your shares. But then it also changes (often substancially) when the squirrels recalcuate your social media activity.

I highly recommend EAv change share prices so they are based exclusively on outstanding shares – supply and demand – and completely eliminate the social media component.

If you think about it, social media is already factored into share prices indirectly. People buy and sell your shares based your dividend, which is calculated from your social media activity.

EDIT 7:30 PM EST – One other problem the nightly share price adjustment causes which I forgot to mention initially is that because the vast majority of new users get an increse in share price the first night, theres no risk in buying every new user who signs up. This contributs to the rapid increase in share prices for new users and then subsequent drop when many of them dump those shares (aka “pump and dump.”) eliminating the share price adjustment would also reduce that problem.

What do you think? 

  • Please vote in the poll below
  • Please post a comment and share your thoughts pro or con, and
  • Please share the link to this post with others, encouraging them to weigh in on this issue.

Read & vote on all the recommended improvements at 12 Critical Improvements Empire Avenue Should Make

Advertisements