Quote:
Originally Posted by elendil200
Haha, feel like a bit of an idiot now
I have never staked or bought pieces. I have been on these forums for a while and just assumed it was stake back and 50/50. Wow, wuddya know?
Yeah, no reason you should've known - the only reason I do is because I mod the Marketplace forums. That gives me just enough knowledge for the basics, and hopefully others will correct me if I get anything wrong.
Quote:
Originally Posted by elendil200
I don't want to derail, but according to some pretty experienced posters, when you buy 10% of the action, you are returned 10% of the gross prize? So the player earnings are always capped to the markup the player adds? If so, what is in it for the player to make a larger score?
I'm not positive what you're asking.
If someone sells shares to the WSOP Main Event, for example, it could go something like this. They decide to sell 50%, at a 1.4 markup. That means that every 10% would cost $1,400, and such a piece would entitle you to 10% of whatever is won by the player. If the player sells out, they would be paying $3,000 and the investors would be paying $7,000. Of course the player will also be paying any expenses. The player would then receive 50% of any winnings, and the investors the other 50%.
The markup has no effect on what is paid out - it simply changes the price one pays for a given %. It's usually determined by expenses and what the player is "worth". IE players who are considered to have a bigger edge can command higher markups.
Hopefully that answers your question.