Buying shares in your MP…

Thanks to Alan for this. It’s a website that sells fantasy shares in Westminster MPs. According to Alan the current values of prominent local MPs sit at: Adams £5, Paisley £4.94, Trimble £4.80 and Mallon £4.80. mmm, not between them. Though Gerry does well for never actually turning up! Currently Tony Blair is worth £45!

  • Occasional Commenter

    What drives these prices? Shares are usually priced by what the market thinks is the likely size of future dividends. What are the dividends in this case? Is it based on how they do at the election?

    Does this mean that the market, in this case, thinks that Paisley is more likely to lose his seat than Adams?

  • PS

    Surely Mallon would be a poor investment at £4.80 considering all evidence points towards an SDLP liquidation in Newry and Armagh come May 5th!

  • Will

    Occasional Commenter
    It could be run a little like the BBC ‘Celebdaq’ where the prices are driven by press coverage of that particular individual in the last week.

    Obviously there would need to be an effect for electoral performance too.

    Might have a look at this for a laugh

  • smcgiff

    ‘Shares are usually priced by what the market thinks is the likely size of future dividends.’

    Jaysus, don’t tell me they’re still teaching that one! Even pension fund managers take more stock (pardon the pun) on expected capital value. Hence they invest in company’s like (snigger) Elan who haven’t issued a dividend in donkeys. Er, sorry for this rant.

  • Jimmy Sands

    They still have Mandelson as an MP.

  • Jimmy Sands

    They still have Mandelson as an MP.

  • factfinder

    Should their wages not match the share prices.

  • Occasional Commenter

    smcgiff, I agree entirely. The most obvious example I can think of is Microsoft, who didn’t pay any dividend at all until last year.

    I asked the wrong question. Will’s comment that there might be a dividend based on column inches is exactly what I was looking for.

    This might explain Mallon’s price, because he would get a lot of column inches, win or lose.

    There still needs to be some reason to own a share (MP or company), whether it’s a dividend, or the thought that you, or others, might want to take it private to extract the capital at some point in the future.

    If there was never any such possibility to extract real value from the share, then all shares prices should go to zero sooner or later, perhaps after a boom and bust like the insanity that drove the dot-com shares.