I have another question, but I'm on otc at the moment, so I'll ask MP directly.
Session Start (#bitcoin-otc:mircea_popescu): Tue Feb 28 22:18:06 2012 1000
[22:19] Brendio: I have a question about your MPOE stock/bond offering
[22:19] mircea_popescu: shoot
[22:19] Brendio: With the bonds, I don't get how you know each month how much capital you'll need
[22:19] Brendio: before
[22:19] Brendio: hand
[22:20] mircea_popescu: you don't do it beforehand
[22:20] mircea_popescu: you do it after the month close.
[22:20] Brendio: So how will that work if investors are investing month by month?
[22:20] Brendio: or send mid month?
[22:20] mircea_popescu: i am the creditor of last resort
[22:20] mircea_popescu: so i always cover anything that's needed.
[22:21] mircea_popescu: and you can only finance full months, no matter when you send you start financing the next month
[22:21] Brendio: And if you get more suppky than demand, the too-high bidders get nix?
[22:21] mircea_popescu: when you want out you get your money at months end
[22:21] Brendio: Does it automatically reinvest?
[22:22] mircea_popescu: yes.
[22:22] mircea_popescu: on both scores.
[22:23] Brendio: if someone invests on march 15, does that count for march, or only start in april?
[22:24] mircea_popescu: starts in april, technically march 31st
[22:24] mircea_popescu: cause april starts on march 31st due to the last-friday-ends-month rule
[22:24] Brendio: and interest would be paid/credited when? end of april approx.?
[22:25] mircea_popescu: between last tick of last friday of a month and monday next.
[22:25] mircea_popescu: usually within a few hours of close.
[22:26] Brendio: and if I bid 1.99% for april, and you can fill the demand at 1.5%, I get no interest for the month, even though you've held my coins?
[22:26] mircea_popescu: yes.
[22:26] mircea_popescu: price formation goes both ways, you want to bid as little as worth it and as much as sensible.
[22:27] Brendio: hmmm. Okay. My understanding was correct. It is a very odd structure. Hard to price!
[22:27] mircea_popescu: i agree it's odd
[22:27] mircea_popescu: let me just say that i didn't do it like this for the sake of making it odd tho.
[22:28] mircea_popescu: one thing going in your favour is that the exchange uses exactly one bitcoin address, and all transactions are coded
[22:28] mircea_popescu: so you can look at the money flowing in or out, and decide.
[22:28] mircea_popescu: stock buys end in 999 bonds in 888 etc.
[22:28] mircea_popescu: so you at least get a feel for the overall volume if nothing else.
[22:29] Brendio: You structures it that way it to control your risk?
[22:29] mircea_popescu: to control everyone's risk pretty much.
[22:29] Brendio: I hadn't realised that. I thought only you would know by the emails
[22:29] mircea_popescu: basically even if the statements are made are convoluted
[22:29] mircea_popescu: at least they are absolute.
[22:30] mircea_popescu: no, you can look at 1JPvucRfu3ZzEvfBUQTJwsxMrZjeTqD6zR everything is in there.
[22:30] mircea_popescu: buys/sells/exercises of options too, for auditing purposes.
[22:30] Brendio: saves you needing to predetermine how much capital to hold
[22:31] mircea_popescu: for one, yes.
[22:31] Brendio: So, no stock holders yet ...
[22:31] mircea_popescu: there's like 4-5 buyers so far yes.
[22:31] mircea_popescu: between you and me i think the current offering is a little oversubscribed maybe.
[22:32] Brendio: whoops, got stocks and bonds mixed
[22:32] mircea_popescu: no bonds yet no.
[22:32] Brendio: no bonds yet
[22:32] mircea_popescu: but makes little sense to send bonds so early in the month.
[22:32] mircea_popescu: besides i think most of the ppl with capital are trying to figure out how to price me.
[22:32] Brendio: is there a time limit for the stocks?
[22:32] mircea_popescu: only been out a few days yet.
[22:32] mircea_popescu: nope.
[22:32] mircea_popescu: or what do you mean by time limit ?
[22:33] Brendio: To buy stocks
[22:33] mircea_popescu: there's no time limit in the sense that stocks claim to dividend is perpetual, they do not expire. however, subscriptions do expire, the current one on the 1st of march
[22:33] Brendio: just reread - Friday, the 1st of March 2012, 23:59:59 GMT,
[22:34] mircea_popescu: i intend to offer a block for 1 week each beggining of a month.
[22:34] mircea_popescu: so prolly will be another offer starting 31st of march till 7th april.
[22:34] Brendio: okay good to know. Will there be any public record of prices for which stocks are transferred, or is it all otc?
[22:34] mircea_popescu: all this will be announced with the regular (monthly) results, which also come out after close of month.
[22:35] mircea_popescu: I will do a closing of the public subscription listing the total ammt received total ammt per share and share blocks
[22:35] mircea_popescu: allocated.
[22:36] Brendio: I mean for secondary transfers, like stock market prices, as opposed to an ipo price.
[22:36] mircea_popescu: there's no way for me to ascertain price
[22:36] mircea_popescu: maybe people give it away, or trade them for blowjobs. i don't know.
[22:37] Brendio: yeah, that's what i thought. I might look out for any trading here
[22:37] mircea_popescu: some people were talking about taking it to glbse or other such places, in which case...
[22:37] mircea_popescu: im pretty sure in the end there will be price formation somehow.
[22:38] Brendio: Okay, cool, I think you've answered most of my questions. I think about it some more, but might stick to pirate's program and glbse for now ...
[22:39] mircea_popescu: one important point :
[22:39] mircea_popescu: if you bit 1.99% and i fill at 1.5 you get no interest
[22:39] mircea_popescu: BUT if the mpoe goes bad in the red, you get no loss attributed either.
[22:39] mircea_popescu: and also, do you mind if i publish this on the blog so other people can benefit by the discussion ?
[22:39] Brendio: yeah, I figured that.
[22:40] Brendio: Yeah okay. I can put it on bitcoin talk too.
[22:40] mircea_popescu: cool.