GREY:SMDWF - Post by User
Comment by
CQCmasteron Jul 24, 2015 11:52am
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Post# 23956958
RE:ok please some one with some intelligence explain to me why
RE:ok please some one with some intelligence explain to me whythis is how companies get money on venture these days...
Ipo and scam. For example;There is a good story about how company XYZ has developed some technology that may or may not work. So the pump begins... Promoters come in and slowly accumulate most of the float, then they promote this story, then retail investors come in and start buying into the story. The price goes up by 300% in a month. While everyone is buying, the promoter is selling. The price comes to its peak... The promoter has sold all of his shares for a huge profit. Phase 2 begins... Company XYZ goes to the promoter/financier and asks for money to fund the company while the financier gets millions of warrants at bargain price and a fee for all the work they are about to do next... Financier starts shorting the stock on a massive scale, the price starts going down rapidly... The financier starts covering with the warrants. The money that has been shorted and covered goes to the company. Financier gets some type of compensation for their work which either can be money or special warrants. Financier was never in a risk because their shorts were already covered at the lower price warrants. The money made goes to company XYZ and special compensation goes to the financier. Job well done and company XYZ is happy with the funding