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| The Stock Market Act of 2006 Article 1 Name. This act shall be officially cited as the Stoch Market Act of 2006. Article 2 Stock exchange in Geneva. A state-administrated stock exchange shall be established in the city of Geneva, and shall be named the Geneva Imperial Stock Exchange. Article 3 Initiation fee. Any incorporated society, domestic and foreign alike, may, upon application and after payment of an initiation fee of AE 50.00, be authorized by the Ministry of Finance and Economics to do business as a company. Article 4 State-owned companies and their establishment. The Emperor or the Prime Minister of the Empire may, by a General Order or an Imperial Decree, establish not more than 12 governmental companies and provide for their administration. Article 5 Shares. Each business shall be automatically divided into 100 shares. The owner of the business shall determine whether the business is traded on the Exchange by determining the number of shares made available to the public. If no shares are made available to the public, the company is not listed or traded on the Exchange. If the company is to be traded, a minimum of 10 shares and a maximum of 100 shares may be made available to the public, as determined by the owner. Article 6 Changing amounts of shares available. A business wishing to change the amount of shares available to the public to a different amount than it originally decided upon must pay a AE 45.00 fee to do so. However, no shares that are not under the ownership of the company (i.e., shares that have already been traded and are owned by other parties) may be eliminated unless the company purchases them back. Article 7 Ownership of a company. The owner shall own the business as long as he/she owns 51 shares or more. If another shareholder gains 51 or more shares in the company, they become the new owner of the company. If no shareholder owns a controlling stake in the company, the previous owner retains control of the company. Article 8 Initial Public Offer, IPO. 1.) The stocks IPO (Initial Public Offer) Price shall be determined by the number of shares that the owner makes available to the public. If ten shares are made available to the public, the IPO shall be AE 50.00; if 20, AE 45.00; if 30, AE 40.00; if 40, AE 35; if 50, AE 30.00; if 60, AE 25.00; if 70, AE 20.00; if 80, AE 15.00; if 90, AE 10.00; and if all 100 shares are made available to the public, the IPO shall be AE 5.00. 2.) The owner shall make shares available in lots of 2 (ie. the owner may only offer an even number of shares to the public.) For every 2 more shares offered, the IPO price falls by AE 1.00. Article 9 Shares bought by owner consent only. Shares may only be bought with the owners consent. Money shall be transferred from one account to another through the Geneva Imperial Stock Exchange Account. When buying or selling stock, the buyer or seller shall use the price that the stock would be after the transaction is completed. Article 10 Discount of shares bought. If a person wishes to buy more than one share at a time, instead in separate transactions, the person will pay a discounted price for the parcel of shares bought. The discount is determined by the number of shares bought. If the number of shares is between 2 and 5, the discount shall be 5%; 6 and 10, 7.5%; 11 and 20, 10%; and between 21 and 50 would incur a discount of 20%. Article 11 Share prices. 1.) Share prices shall never fall below AE 1.00. 2.) The price of shares shall increase by AE 5.00 for every share of the stock that's been bought, AE 3.00 for every share of somebody else's stock that's bought by the owner of the company, and AE 2.00 for every share of somebody else's stock that is sold by the owner of the company. 3.) The price of stocks shall decrease by AE 1.00 for every week with no transactions (Sunday to Sunday), AE 3.00 for every share that the owner buys back, and AE 4.00 for every share a shareholder sells to someone else or the government. Article 12 Restrictions. Each citizen is restricted to 1 sale per day to the government. The maximum amount of shares that can be sold per "sale" to the government is 20. The government reserves the right to refuse any sale by a citizen to the government. Article 13 Selling ownership of company to government. 1.) The owner of a business may sell up to 50% of the shares that are currently available to the public (un-owned, but available) to the government for a cash payment. In this transaction, standard rules still apply. 2.) This action may be performed only once weekly. Article 14 - Mergers. 1.) Mergers between businesses are permitted. The owner(s) of the businesses must agree to the merger, and a 50% + 1 vote for the merger by shareholders (given that 1 share is equivalent to 1 vote) is needed in order for the merger to take place, along with approval from the Ministry of Finance and Economics. 2.) The two businesses' prices are averaged together, then multiplied by 1.5 to find the new stock price for the merged company. If the new price is less than the price of both the original companies, then the new price shall be the highest price out of the two (2) original companies plus one (1). 3.) A business may have a merger with another business only once a quarter. Article 15 General Meeting of Shareholders. Each business shall hold a general meeting of shareholders every quarter (3 months). Each business shall also release a short interim report for the 1st, 2nd and 3rd quarters, and an annual report at the end of the year. Article 16 Stock fraud. A person engaging in "stock fraud", is liable to face a fine up to AE 10,000.00, revocation of the ability to buy and sell stocks, and the termination of that person's business, if applicable. Article 17 Preventing transactions. The Ministry of Finance and Economics, with the consent of the Emperor or the Prime Minister, may prevent a transaction from occurring for whatever reason it wants and suspend business activity if it deems it necessary. The government may also limit the amount of transactions a person conducts daily. Article 18 Imperial Assent. This act shall become law once it receives Imperial Assent. |