Vision - Where Fantasy becomes Real
Even though GolfInvestors has started out as a game (via it's simulation markets), the ultimate vision of GolfInvestors has always been to become a real stock market environment. A real stock market in that the GolfInvestors environment will allow professional golfers to raise funds for their golfing endeavors and to allow for investors to actually invest real money in professional golfers.
The investing in a professional golfer is nothing new. Country club members have many times in the past provided financial backing to a local golfer to help them fund their dream of playing in the professional golf ranks. GolfInvestors takes this "country club" approach and improves on the concept with technology, including associating an accounting system to the trading exchange.
In the past it would be 3 or 4 wealthy individuals at the local country club that would setup a limited partnership with the professional golfer and put money into it. There would be enough money to support the professional golfers for a limited number of years, as agreed upon by the partners in the limited partnership (i.e. the 3 or 4 investors and the professional golfer). This money would help the professional golfer tackle the ranks and hopefully break out in several tournaments to win money to payback the investors.
Of late, announcers on NBC Sports during the 2004 BellSouth Classic in Atlanta, Georgia, mentioned regularly that a group of 10 investors backed the winner of that tournament, Zach Johnson. Many of people in that original investor group were present when Johnson putted out on the 18th hole during the final round to realize one of his dreams of winning a US PGA Tour tournament.
So earnings were disbursed amongst the investors according to the percentage invested in the limited partnership. There was no trading ownership in the limited partnership. The investors would get paid in dividends paid out by the limited partnership.
It was difficult to monitor a golfers earnings and expenses for the investors. As well, an investor would not be able to sell their portion of their investment in the limited partnership very easily. It was, in many cases, an illiquid asset for them.
GolfInvestors looks to change that. In providing a solid and active means for professional golfer to raise money to fund their golfing endeavors and investors a means to invest in and trade amongst golf enthusiastic investors, GolfInvestors will have an investment environment that can be monitored, audited, and policed affectively. Unlikely with markets like the NYSE and the NASDAQ, the GolfInvestors encompasses strong and fortified reporting provided in real-time. Investors do not have to wait 120 days or more to see the financial results of the professional golfers they invest in. They see if within a day or two of when the earnings are credited to the professional golfer's account.
Then to help implement the overall view of a stock market, GolfInvestors looks to make the industry-specific stock market concept a reality. The industry-specific stock market will have specific accounting rules that are relavent to the industry and not just general rules that confuse investors and hide the true results and trends. The accounting rules will be implemented in an accounting system which is within the stock market's operations and golfers (which are companies) use to report incoming and outgoing transactions. These incoming and outgoing transactions are transactions which directly happen through the accounting system and associated bank (or banks). Such a setup which allows for the stock market to have an accounting system as part of its offering to companies which are traded on its trading system allows golfers to report their financial statements and results in real-time to investors.
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