Tuesday, August 16, 2016 4:02:12 PM
tdtcal Friday, 08/05/16 11:01:34 AM
Re: eiddle post# 53908
Post # of 54091
Perhaps:
"With the execution of the “Purchase Agreement” MVTG agreed to issue LOANING SERVICE (LC) "X" newly issued shares for free. LC can now use these free shares in their account as a “float” to sell shares in the market in advance of the shares they will purchase later at a discounted price(the lowest quoted price of the day), effectively engaging in a transaction akin to shorting the shares they will cover via purchase later, while on paper it can be claimed that LC is transacting from a long position.
One can imagine a scenario like this, LC starts the day with the full balance of the "X" free shares, during that day they sell in the open market at various price points X0,000 shares, end with a balance of "X" shares; at the end of the day they go to MVTG that issue them X,000 new shares at the lowest quoted price of the day and the balance is replenished to "X" shares, LC can now repeat the same transaction the next day, effectively shorting the stock with the appearance of being a long seller.
Using the same scenario example, that same day MVTG stock fluctuates between $10 and $11 and LC manages to sell the X0,000 shares in the open market at an average price of $, at the end of the day they purchase X0,000 shares directly from MVTG at $ the lowest price of the day, pocketing $X.50 per share, a $X,000 completely risk-free profit and delivering $X00,000 of fresh cash extracted from the marketplace to MVTG bank account, basically, in this example, a X% commission to transfer funds from retail investors to MVTG.
One should consider......
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