Quote:
Originally Posted by Mr2jt
Umm... do you guys know about stocks???
Basically Matt is doing an IPO right now... selling his shares for $55 at $50 a share. He is selling his shares at a premium because he presumes that his stock will raise to at least $55 during time frame of his BAP. Wither it's true or not... guess that's up to the investor to judge. Matt said that he would like to raise 20k to start, at $50 per share that is 400 shares to sell. Now is that the max number of shares that are available or Matt will allow more? If so, I would release a new batch of shares to sell if that is the case. Otherwise wouldn't it be too confusing to the investors?
Just like in stocks... the price per share will fluctuate based on the performance of the comany (ie. Matt). Now are there daily trades of shares available at the end of the day?
And just like the stock market, if the stock is doing really well (ie. doubling his br thru a big score), he can split his shares so more and more people can invest in his stock easily. Either it be a 2:1 split or something is up to the company.
I think putting it this way would be easier for the investors to understand. I think it's cool that Matt has setup his BAP this way to start.
But I would think that selling your shares at a 20% penalty is too harsh. If I were u matt. I would put that number closer to 5% than anything else. Even the banks wouldn't charge 20% penalty if you had to terminate a CD deposit.
Good points. Thank you. I will not be capping at $20K, though I may decide on a cap if too much comes pouring in. $30K is the bankroll that would allow me to play most everything on the schedule, though I am not planning on having that amount unless I work it up to that.
I may split shares if they get high enough
and still want to raise more funds. But probably if they get high enough to split I'd have a large enough bankroll that I wouldn't need to raise more.
For now I'll keep the 20% penalty. Since the fund expires at the end of August it isn't that long that investors have to wait to see. I want to have to penalty big enough to discourage whimsical withdrawals that could drop me down to lower level tourneys, while also rewarding (by keeping the penalty in the bankroll) those investors who hang on until the end (everyone, hopefully). If everybody thinks this is too high then I'll lower it. It isn't just for me here - I'm only one (albeit, so far, the majority) shareholder.
