Yes it's true, there's a stock exchange for investing in Somali pirate operations!
One wealthy former pirate named Mohammed took Reuters around the small facility and said it had proved to be an important way for the pirates to win support from the local community for their operations, despite the dangers involved.
"Four months ago, during the monsoon rains, we decided to set up this stock exchange. We started with 15 'maritime companies' and now we are hosting 72. Ten of them have so far been successful at hijacking," Mohammed said.
"The shares are open to all and everybody can take part, whether personally at sea or on land by providing cash, weapons or useful materials ... we've made piracy a community activity."
Read more: http://www.financialpost.com/news-se...#ixzz18tXF5Yvm
Some more info on how it works:
Here’s how it works. In the event of a pirate attack, the vessel’s crew contacts company headquarters, which in turn, contacts its insurance company, which in turn, contacts a security firm, which then begins negotiations with the hijackers.
“Paying ransoms is not illegal,” Guillaume Bonnissent, a special risks underwriter for Hiscox Insurance Co. Ltd, which writes about two-thirds of the world's kidnap-and-ransom insurance policies, tells Time magazine. It is, however, illegal for insurance companies themselves to pay ransoms, which is why Control Risks and others make the payments. “K&R is really reimbursement,” Bonnissent said. “We reimburse clients for ransoms paid.”
Read more: http://www.minyanville.com/businessm.../2010/id/31838