inKLine Media

By Bill Kaye

The in-world trading floor of the virtual stock exchange. (Photo by Shar Darkmatter).

The stock market on Second Life (R)…  Well let’s back track.

Yes, there is a stock market on SL.  Although it describes itself as a “stock simulation game,” the Capital Exchange  (CAPEX) functions very similarly to Wall Street, minus the 99%.  The major distinction: only companies that “EXCLUSIVELY WITHIN the Second Life(R) Environment,” according to the policies listed on CAPEX site.

That rule does include some shades of gray, particularly the word exclusive, but it’s worth keeping it in mind as a general rule that these companies are predominantly involved with business dealings in the virtual world.  But there is a application process that CAPEX takes very seriously if a company wants to “go public.” Currently there are 60 companies listed on the CAPEX .

Now why would a company want to do that?    When a company wants to raise funds to cover its operating expenses, it can offer stock in the company.  This allows a company with little to no revenue to raise funds, or capital, to cover those expenses, and hopefully, make a profit.  The drawback: the company’s executives now have to answer to those investors, or shareholders, if the stock does poorly.

The goal for investors?  To receive a dividend, or a profit off their investment.  Of course, the investor bears the inherent risk of losing money if the stock dips below the value of what they purchased it for when they sell it.

So how do you get invested?  First, do your research.  I hate when people tell me that and never offer any places to conduct it.  So visit slcapex.com for rules, price histories, company listings and history.  It has extensive information.  Many companies publish informative newsletters.  And there’s another source…SL Business Review.

We will continue to update you with trends and happenings in the virtual stock market.

Visit the CAPEX trading floor at (Capital Exchange Stock Market Ma, Crystal Springs (192, 185, 26)) or or slcapex.com for more information.