The K.M.M. Bank

When shareholders buy shares of KmikeyM.com, they are buying those shares from other shareholders. I only put shares out on the market at specified times.

With the deposits of shareholder funds, I am essentially running a bank (in addition to a public company and a market). Two shareholders could agree to exchange money completely within this system. For example, someone might buy a CD from States Rights Records, and just transfer the money from their account to his account.

The system does not currently support automated transfers from one account to another, but I could facilitate an exchange like this.

By holding funds, and being able to credit from one account and debit to another, I am only missing the ability make loans in order to truly become a bank (The ELP allows me to loan money to myself under certain conditions). It's my impression that the shareholders don't want me loaning money as a general policy.

However, I believe that loans within the context of the system might be a resolution that could be passed. That is, loaning shareholders in good standing the funds to buy more shares. With PayPal fees taking $0.59 out of a $10.00 deposit (2.9% + $0.30), a loan from the bank would be a cheaper way to quickly gain access to funds to secure a trade and could still return an investment to KmikeyM.com. By only loaning to shareholders in good standing, there is likely the collateral of their shares should they default on a loan.

During the auction there is a sort of de-facto loan program in place as KmikeyM.com works to collect the money and distribute shares to the highest bidders. A formal loan program would allow that system to benefit the majority of shareholders if a person was late in making their payment, while still honoring the agreement of their bid.

I'd be interested in any feedback people have about this idea.