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Re: karw post# 36906

Monday, 12/14/2015 6:43:37 PM

Monday, December 14, 2015 6:43:37 PM

Post# of 47133

Using standard AIM we can never sell all our equity but we can exhaust our cash. Using the inverted AIM we can never sell our cash but we can exhaust our equity.


But what to do with such cash accumulation (selling all of stock) ???

A typical AIM stock might see stock prices progressively rising. A typical 'cash' AIM might see prices progressively declining, until all of reserves (stocks) had been sold to 'buy more cash'.

You'd have to have some mechanism - a bit like a Vealie - to prevent too much cash accumulation. Perhaps starting a new AIM periodically. Or perhaps stop selling stock to buy more cash when below/above a certain threshold.


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