Saturday, February 06, 2010

A new calculation of your worth. An explanation if you lost inkles overnight.

We deployed a new calculation of the total worth of your investments that you see in the "Investments" portion of the right top corner of your dashboard. "Investments" is also the number that gets used to calculate your entire worth on the site for purposes of the leader-board rankings.

Before, we were calculating how much your investments were worth just taking how much stock you own in something and multiplying it by its current price. You could for example, buy 1000 shares of something starting at a penny, and even though that might only cost you $100 or so dollars with the stock then at $0.55, your investments would shoot up to be “worth” $550. Even though you really are only going to be able to sell them back right now for $100. You could then buy a bunch of cheap stock and shoot up on the leader-board.

This was causing confusion amongst new and seasoned players alike.

We came up with a way for us to be able to much more accurately capture how much in total those investments are really worth if you sold them right now. So buying those 1000 shares starting at 0.01 will now decrease your balance by $100, but also increase your investments by $100 leaving your total worth not changed at all.

Unfortunately some players saw some of their worth evaporate last night. It might even change a couple leaderboard rankings, though for most of us we'll all be affected relatively.

I'm sorry about the shock this was to some people. This seems like the right thing to do though.

Your worth now doesn't just immediately increase because you move cash into stocks, just like it wouldn't in the real stock market. Similarly you can't game the leader-board just buy buying lots of cheap stock.

But we welcome all feedback about this. Let us know what you guys think.

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