======= Stocks Game Mechanics =======


The Game Mechanics section of the manual details the internal formula used in the game's calculations.  This section of the manual uses pseudo-code and may not be 100% the same as the code in the game. 

The Game Mechanics part of the manual is mainly designed to be a reference for the frequently asked question, "Why do I get this rating when I do X, Y, Z?!" Usually, this answer involves many different variables, which this section of the manual demonstrates. 

**The game mechanics section of the manual shows [[https://idioms.thefreedictionary.com/seeing+how+the+sausage+gets+made|how the sausage gets made]]. So you really may want to avoid this portion of the manual if you enjoy the game.** 


====== Variables ======

^ Name ^ Description ^ ^ Name ^ Description ^
| **Money** | Amount of cash your company has | | **Total_Debt** | Total Debt including all Loans, Bond Par Values, and Line Of Credit | 
| **Branch_Construction_Costs** | Total value of all branch construction | | **Factory_Construction_Costs** | Total value of all completed factory construction | 
| **Vehicle_Inventory** | Vehicle inventory times the average unit costs of the vehicles | | **Total_Design_Costs** | Design costs of all your components and vehicles divided by 10 | 
| **Share_Holdings** | The value of other company shares you own | | **Global_Stock_Rate** | Global Stock Rate as defined by the TurnEvents.xml file  | 
| **Revenues_12_Months** | Revenues over the last 12 months | | **GameStartYear** | The year you started the game | 
| **Evaluation** | Price Evaluation defined in the Price Evaluation section | | **EPS_Growth** | Change in EPS rating over the last year | 
| **Total_Shares** | The total number of issued shares | | **CurrentSharePrice** | Share price for the previous month | 
| **Last_EPS** | Last Quarter's EPS | | **Current_EPS** | This Quarter's EPS | 
| **EPS_Q#** | EPS from # quarters ago | | **Delisted** | No longer publically traded | 
| **LY_YTD_Profits** | Last Year Total Profits | | **CurrentFunds** | Current amount of money the company has | 
| **Turn_Expenses** | Last Month's Expenses | | **Turn_Income** | Last Month's Revenues | 
| **LastYear_Expenses** | Last Year's Expenses | | **LastYear_Income** | Last Year's Revenues | 
| **Current_Construction_Costs** | All current expenses from factory construction | | **** |  | 





====== Price Evaluation ======

<code cpp>   
Money - Total_Debt + Branch_Construction_Costs +
Factory_Construction_Costs + Vehicle_Inventory + 
Total_Design_Costs + Share_Holdings
</code>


====== IPO Evaluation ======

<code cpp>

PriceEvaluation =  PriceEvaluation/2.0 + ((PriceEvaluation/2.0) * Global_Stock_Rate)

PriceEvaluation = PriceEvaluation * 1.2 + (Revenues_12_Months * (3 * Global_Stock_Rate))

IPO_Share_Price = 10

Shares_Issued = PriceEvaluation / IPO_Share_Price
</code>


====== Share Price ======

<code cpp>

if(Year > 2000)
{
    if(Year-GameStartYear > 8 )
        NewSharePrice  = ((Evaluation*0.4) + (Revenues_12_Months*1.0*Global_Stock_Rates) *
                (0.75 * EPS_Growth)) / (Total_Shares);
    else
    {
        NewSharePrice  = ((Evaluation*(0.4+((8-(Year-GameStartYear))*0.1))) +
            (Revenues_12_Months*1.0*Global_Stock_Rates) *
            (((Year-GameStartYear)*0.1) * EPS_Growth)) / (Total_Shares);
    }
}
else
{
    if(Year-GameStartYear > 8 )
        NewSharePrice  = ((Evaluation*0.4) + (Revenues_12_Months*(10.0-((Year-1900)/10))*
            Global_Stock_Rates) *(0.75 * EPS_Growth)) / (Total_Shares);
    else
    {
        NewSharePrice  = ((Evaluation*(0.4+((8-(Year-GameStartYear))*0.1))) +
            (Revenues_12_Months*(10.0-((Year-1900)/10))*Global_Stock_Rates) *
            (((Year-GameStartYear)*0.1) * EPS_Growth)) / (Total_Shares);
    }
}




NewSharePrice = CurrentSharePrice +
    ( ((NewSharePrice - CurrentSharePrice) / 3.5) +
    ((((NewSharePrice - CurrentSharePrice) / 3.0)) -
    (NewSharePrice - CurrentSharePrice) / 6.0) )

if(NewSharePrice < 0)
    NewSharePrice = 0.01;

if(A Quarter Month)
{
    if(Last_EPS > 0)
    {
        if(Current_EPS > Last_EPS * 2.0)
            NewSharePrice = NewSharePrice * 1.15; 
        else if(Current_EPS > Last_EPS * 1.2)
            NewSharePrice = NewSharePrice * 1.1; 
        else if(Current_EPS > Last_EPS * 1.1)
            NewSharePrice = NewSharePrice * 1.05; 
        else if(Current_EPS < Last_EPS * 0.9)
            NewSharePrice = NewSharePrice * 0.95; 
        else if(Current_EPS < Last_EPS * 0.8)
            NewSharePrice = NewSharePrice * 0.85; 
        else if(Current_EPS < Last_EPS * 0.7)
            NewSharePrice = NewSharePrice * 0.75;
    }
    else if(Last_EPS < 0)
    {
        if(Current_EPS > Last_EPS * 0.7)
            NewSharePrice = NewSharePrice * 1.15;
        if(Current_EPS > Last_EPS * 0.8)
            NewSharePrice = NewSharePrice * 1.1;
        if(Current_EPS > Last_EPS * 0.9)
            NewSharePrice = NewSharePrice * 1.05;
        else if(Current_EPS < Last_EPS * 1.1)
            NewSharePrice = NewSharePrice * 0.95;
        else if(Current_EPS < Last_EPS * 1.2)
            NewSharePrice = NewSharePrice * 0.85;
        else if(Current_EPS < Last_EPS * 1.3)
            NewSharePrice = NewSharePrice * 0.75;
    }
    else if(Last_EPS == 0)
    {
        if(Current_EPS > Last_EPS )
            NewSharePrice = NewSharePrice * 1.05;
        else if(Current_EPS < Last_EPS )
            NewSharePrice = NewSharePrice * 0.95;
        else if(Current_EPS == 0 && Last_EPS == 0 && eps3 == 0 && eps4 == 0)
        {
            NewSharePrice = NewSharePrice * (Random Number Between (0 AND 0.2) + 0.95);
        }

    }

}

if(NewSharePrice < ((Evaluation * 0.7) / Total_Shares))
{
    NewSharePrice = ((Evaluation * 0.7) / Total_Shares);
}



if(CurrentSharePrice != 0)
{
    priceChange = NewSharePrice / CurrentSharePrice;
}




</code>




====== Share Splits ======


===== Split =====

<code cpp>

if(NewSharePrice>(30+((Year-1899)*2)) OR 
(((EPS_Q1+EPS_Q2+EPS_Q3+EPS_Q4)>(4+((Year-1899)/3))) AND NewSharePrice > 5) )
{			
    NewSharePrice = NewSharePrice / 2.0;
    TotalShares = TotalShare * 2;
    
}
</code>

===== Reverse Split =====

<code cpp>
if(NewSharePrice < 1)
{

    if(TotalShares / 2 > 1000)
    {
        TotalShares = TotalShares / 2;					
        NewSharePrice = NewSharePrice * 2;
    }
    else
    {
        Delisted     
    }

}

</code>
====== Takeover Price ======

<code cpp>
if(Shares_Needed > 0)
{
    if(EPS_Year < -0.5)
    {
            AqusitionCosts = ((((Price_Evaluation*1.1)/(Shares_Needed)/5) +
             (PricePerShare*1.3)) * Shares_Needed)*DifficultyBonus ;

    }
    else
    {        
            AqusitionCosts = ((((Price_Evaluation*1.2)/(Shares_Needed)/2.5) +
                (PricePerShare*1.75)) * Shares_Needed) * ((EPS_Year/10.0) + 1)*DifficultyBonus;       

    }

    PricePerShare = (AqusitionCosts / (Shares_Needed));
}
else
    AqusitionCosts = ((Price_Evaluation/10))*DifficultyBonus;

</code>



====== AI Buy/Sell Shares ======


===== Institutional =====

==== Buy ====

<code cpp>
if(priceChange > 7%)
    Buy 10% of the available shares.
else if(priceChange > 4%)
    Buy 7% of the available shares.
else if(priceChange > 0% AND Random Number Between (0 AND 4) = 0)
    Buy 3.5% of the available shares.
</code>

==== Sell ====

<code cpp>
if(priceChange < -10% AND Random Number Between (0 AND 12) = 0)
    Sell 4% of shares owned.
else if(priceChange < 0.95 AND Random Number Between (0 AND 12) = 0)
    Sell 2.5% of shares owned.
else if(Random Number Between (0 AND 12) = 0)
    Sell 1% of shares owned.
</code>



===== AI Companies =====

==== Buy ====

<code cpp>
if(LY_YTD_Profits > 0 && CurrentFunds > (LY_YTD_Profits*2) )
    Buy 10% of CurrentFunds worth of stock shares.
</code>


==== Sell ====

<code cpp>


IF (( CurrentFunds < ( (Turn_Expenses-Turn_Income) * 3 )  AND 
	CurrentFunds < (LastYear_Expenses - LastYear_Income) ) OR 
	CurrentFunds < (Turn_Expenses-Current_Construction_Costs-Turn_Income))
{
    if( Company owns more than 25% of self )
        Sell 5% of shares owned of their company.
    else
        Sell all shares of random company.
}
			 
</code>