I did not write this post.

[Alden Tone]

Not sure what happened, but I did not create this thread to the best of my knowledge.

If an admin sees this bump, please burn this thread.

[PeterCanessa Oh]

What?  The CAPEX?  CEOs?  Investment?  'The exchange'?

This is an SL forum.  You seem to need a contract lawyer.  We don't have that stuff here.

Banks and banking are illegal in SL - except for RL banking institutions.  The same is, presumably, true of anyone offering other regulated services.  Do it RL and get it in writing.

"Everyone's" best interest is probably best served by avoiding anything like this in SL.  Failing that then, yes, get the paperwork on file but it's nothing to do with SL or LL, it's just an inter-resident thing.

[Ciaran Laval]

SL Capex is a stock exchange not a bank and they are still allowed, I'd forgotten all about SL Capex until I got a notecard from them the other week, it has been a long time since I've seen anything from them.

However, yeah, the best place for the OP to ask these questions is on their website.

[PeterCanessa Oh]

What I read above is "this is only a simulation and a game, and not a real life stock exchange"

I assume RL stock-exchanges in the USA are a regulated business?  If CAPEX is dealing in anything approaching RL stocks & shares then RL rules apply.  If, on the other hand, the 'companies', 'stocks', etc. involved are just virtual then you have absolutely no rights whatsoever ... beyond legal recourse in the cases of fraud or breach of contract.

Got anything in writing beyond "this is only a simulation and a game"?

[Perrie Juran]

I am slightly confused here.  I looked at the CAPEX website and am still not sure of this one thing.  Are they converting Linden dollars to Real dollars and trading on stocks with that money?  And if so wouldn't they have to register as a RL Brokerage firm?  I couldn't figure it out from the website.

I would however be of this opinion, that like any earnings in SL, an investor would not be liable for taxes until they converted their earnings in Linden dollars to RL money. (disclaimer:  IANAL).

[Skip Oceanlane]

It should be noted that here we are 14 months after I took over Capital Exchange and it's going stronger than ever.  I listened to the concerns of many about the lack of regulation, and created the Capital Exchange Regulatory Commission (CERC).  This 11-person volunteer Board that is appointed by me has substantially helped create a regulatory environment to ensure exchanges rules are being followed.  This Board, combined with our more conservative policy and rules of what virtual company can list has resulted in an extreme reduction in the number of companies that have failed from before January 2011 when I took over. 

As we approach 60 listed companies, many of which (but not all) pay a dividend, there is now a solid track record of performance and trust established by Capital Exchange.  There are still risks of course, and companies will still fail now and then - but nothing like the 80%+ failure rate of listed companies from 2007-2008.  Only one company failed that started at Capital Exchange in the last 14 months - a big turnaround from the past.  So I invite everyone to come check us out and ask questions.  Thanks.

Skip Oceanlane
CEO and Majority Shareholder
Capital Exchange

www.slcapex.com

[Dillon Levenque]

It may not have been your intention to do so, but that post made this entire thread look a great deal like an advertisment. I think the Commerce Forum is a better place for it than the GD.

[Qie Niangao]

Remember, this is a "stock market simulation game."  It says so right on their site. Emphasis on "game".

Now, it may be that improving "governance" will make the roleplay more compelling and therefore more fun to pretend to "invest" in that game.  That's fine, as long as everybody understands that it's only a game, where winning the game may very well mean absconding with the most L$s.

[Perrie Juran]

I am still confused by all this. 

You can buy or sell shares in a RL company with Linden Dollars.  That company MAY pay you a dividend.  In Linden Dollars.  But in the meanwhile WHAT is that company doing with the Linden Dollars you invested?

For instance there is an IPO http://www.slcapex.com/ipo  from Moneyserverz Exchange .  They are buying and selling Linden Dollars with real currency to earn a profit.  So how is this just a game and not a real investment scheme?  

Maybe a lawyer could explain it to me.   

[Skip Oceanlane]

Perrie:

You are not buying shares in a real life company.  The companies that are listed are fictitious - Capital Exchange is just a game.  Let me give you an example - Capital Exchange (CAPX) itself. 

The software, website, etc. is owned by me personally.  There is no real life corporation of "Capital Exchange" - that is just the name I use within SL for the game.  Now, any Linden profits I withdraw and convert into US$ are listed under my own personal income taxes (IRS take notice!) but there is no rl corporation involved.  It's up to each CEO how they wish to organize things in rl, and I do not know what real life legal entity, if any, exists for Moneyserverz.  It doesn't really matter because the stock that is listed is fictitious and controlled by the person behind the avatar running the virtual company.  Are there risks involved?  Absolutely.  But since I took over, things have been extremelt stable, and we take it all very seriously to try and block scammers however possible.

So that is why I consider Capital Exchange a game of skill.  It's also a great way for people to learn how to trade stock for real life use.  You can place a market or limit order, buy into Initial Public offerings (IPO's), etc.  You should try it sometime  :-)

Skip Oceanlane

CEO and Majority Shareholder

Capital Exchange

www.slcapex.com

[Perrie Juran]

---

Skip Oceanlane wrote:

Perrie:

You are not buying shares in a real life company.  The companies that are listed are fictitious - Capital Exchange is just a game.  Let me give you an example - Capital Exchange (CAPX) itself. 

Skip Oceanlane

CEO and Majority Shareholder

Capital Exchange

www.slcapex.com

---

Whoa.......You are telling me that MoneyServeZ is a fictitious company?  (For instance there is an IPO http://www.slcapex.com/ipo  from Moneyserverz Exchange . )  Then what is this web site:  https://www.moneyserverz.com/en-.html  ???????????????????

Or are you using their name fictitiously under license from them?  I didn't try registering with MoneyServeZ but that sure looks like the real deal to me.

 

[Skip Oceanlane]

Perrie:

I covered your answer in another thread:

http://community.secondlife.com/t5/General-Discussion-Forum/Secondlife-stock-exchange/td-p/1442309/page/2

Any questions, I'll be happy to answer.  Thanks.

Skip

[PeterCanessa Oh]

Perrie, let's try to explain it this way:

If you buy RL stock in a RL company you get a RL legal certificate that you OWN part of that company.  Your RL lawyers and RL police will send to RL jail people trying to defraud you or abuse that RL contract.  Nothing guarantees that the company won't go bankrupt but you're protected against most risk apart from sheer bad business.

If you buy pretend stock in a pretend (or real) company you may or may not get anything at all.  You have no ownership or rights in that company and no-one to help enforce your point of view.  If the people running the company feel like stealing your money, just going off and playing another game or anything else then that's just your hard luck.

Again:  although the capex 'game' seems to be run well, it is just a game.  Perhaps think of it as fantasy football - you pretend to use pretend money to put together a pretend team but in no way do you ever own or control anything in RL.

[Perrie Juran]

---

PeterCanessa Oh wrote:

Perrie, let's try to explain it this way:

If you buy RL stock in a RL company you get a RL legal certificate that you OWN part of that company.  Your RL lawyers and RL police will send to RL jail people trying to defraud you or abuse that RL contract.  Nothing guarantees that the company won't go bankrupt but you're protected against most risk apart from sheer bad business.

If you buy pretend stock in a pretend (or real) company you may or may not get anything at all.  You have no ownership or rights in that company and no-one to help enforce your point of view.  If the people running the company feel like stealing your money, just going off and playing another game or anything else then that's just your hard luck.

Again:  although the capex 'game' seems to be run well, it is just a game.  Perhaps think of it as fantasy football - you pretend to use pretend money to put together a pretend team but in no way do you ever own or control anything in RL.

---

See my comments in the other thread regarding Moneyserverz Exchange's IPO. 

http://community.secondlife.com/t5/General-Discussion-Forum/Secondlife-stock-exchange/m-p/1458499/message-uid/1458499#U1458499   post # 18

I do wish we could merge these two threads.  In the info provided by Moneyservez Exchange they state:

"We need your investment to develop new features on our website.......we want to raise our advertising budget..........we advertise on Google." (It wouldn't let me copy paste the whole statement.)

Those activities require REAL LIFE MONEY. 

https://www.moneyserverz.com/media/pdf/Moneyserverz_Invetors_en.pdf

Is this company just 'pretending' to use your investment to do these things or are they actually doing them?

Maybe I am wrong but what I am seeing are a bunch of contradictory statements.

But as I said in the other thread all this stuff is really no skin off my teeth.  Just that I found it all very curious.  I am not here to play policeman.