ST Alpha - "If I buy it at $40; they get $40. If I sell to you at $42, I get $2 profit and if it cashes at $45, you get $3 profit...they pay $45 out of what " (Reading a Post)

SlickerTalk
Search Archives
The Leaderboard
The FAQ

Down to Post

Backboards:

Posts: 158

In response to "shares don't float. the price only rises when there are an equal number of people selling as buying." by the 40 year old virgin

If I buy it at $40; they get $40. If I sell to you at $42, I get $2 profit and if it cashes at $45, you get $3 profit...they pay $45 out of what

Posted by Will Hunting (aka JoeMetz) Apr 20 '10, 15:22

initially cost $45.

The only money they get after initial offering is fees from trading shares. Which in this case, would be $2 (1 me selling, 1 you buying).

So they made $42 off that share of Dear John and paid $45. Down $3. Meanwhile, both you and I made a profit off our initial investment.

Responses:

[deleted] 1
- This is HSX we're talking about here. -- nm - Will Hunting Apr 20, 15:30
[deleted] 23
- So before it's offered for sale, it's already been sold? - Will Hunting Apr 20, 15:25 15
  - [deleted] 14
    - Nice explanation, thanks! -- nm - mara Apr 20, 15:29
    - Okay; that, I can understand - Will Hunting Apr 20, 15:29 12
      - [deleted] 11
        
        hah, we should all get a desk at one of the brokerages. who says you can't get paid to Slacker Talk all day? -- nm - the 40 year old virgin Apr 20, 15:34 10
        
        [deleted] 9
        
        I grow weary of seeing "wary" be constantly spelled wrong. :) -- nm - Beryllium Apr 20, 15:46 3
        
        [deleted] 1
        
        sorry, I was just being a nitpicker dork. (See retraction, below) -- nm - Beryllium Apr 20, 15:52
        
        (actually, I have to retract this; a quick search of the past 2 months doesn't turn up any supporting evidence. Must have been somewhere else.) -- nm - Beryllium Apr 20, 15:50
        
        I'm definitely wary - Reagen Apr 20, 15:45 4
        
        [deleted] 3
        
        the potential for whales as pixie mentions really does tempt me though. - Reagen Apr 20, 15:49 2
        
        I'll play ya for it. -- nm - Will Hunting Apr 20, 15:53
        
        [deleted]
- At IPO? -- nm - mara Apr 20, 15:24 6
  - [deleted] 2
    - No, I'm just wondering who gets the money at IPO when somebody buys. -- nm - mara Apr 20, 15:26 1
      - [deleted]
  - [deleted] 2
    - Who's selling it at IPO? -- nm - mara Apr 20, 15:26 1
      - [deleted]

Post a message top

If I buy it at $40; they get $40. If I sell to you at $42, I get $2 profit and if it cashes at $45, you get $3 profit...they pay $45 out of what

Replies are disabled on threads older than 7 days.