RE:RE:Damn1212: Your logic and deductions seem to Two issues
1) the private sale has to be approved by the board each time a block is sold
2) why would D Bros drive share price down knowing they have 26 million shares left to sell if they need money so badly? Also using your math the margin is eroded and your theory is junk because nobody can make a profit by doing this after the share price drops lower
Damn1212 wrote: Boralis
Are you really that naive ?
Seriously ?
Ill help you understand, let me know if it makes sense.
Party X , lets call them D brothers . Own 40 million shares of a company , lets call that company Nexoptics. They aquired those shares for 0$. They can sell a maximum of 25 000 shares per day max on the open market as per an agreement. But they can sell as many shares as they want to a private party.
follow me up to now.?
It would take a really really long time to sell the 40 million shares at a max of 25 000 shares per day.
The D Bros want money now. Today. They want to sell millions of shares at once. Not 25000 shares per day as per the restriction.
Follow me ?
Party x then asks his friend Peter , we will call peter party Y if he can sell shares on his behalf on the open market for a 3% commission on the gross.
Party y will purchase shares from party x on consignment. Sell them on the open market ( remember party x has a restriction to sell on the market but party y doesnt so he can sell as many shares as he likes)
Then, the funds generated by the sale of the shares on the open market lets say in this case 350 000$ for 1 million shares will be tranfered into party y's account.
Party Y then pays 97% of the 350 000$ to party x ( 350 000$ x 97% = 339 500$ )
Party Y keeps 10 500$ for his " work"
Soo
to recap
Party X gets 339 500$ for 1 million shares he got for 0$ ( he had to pay a 3% fee but was able to liquidate his 1 million shares very quickly and bypass the restrictions inplace)
Party y Gets 10 500$ for a quick transaction which cost him 0$
Please let me know if you dont understand.