ATP Oil & Gas Pref Shares fka ATPGQ

[eddy2]

http://www.investopedia.com/articles/optioninvestor/10/derivatives-101.asp


For the ones who doesn't know what I was revering too the above will help to explain. The thing is not many understand that you can take your own position in the derivative and short the stock to only get it back again for the gain of the short and still hold the stock. This is often a method insiders use to short there own stock with out reporting the sale if you control insiders borrowed shares that in turn becomes revenue that can be used to underwrite more stock as well as collateral to borrow more capital to underwrite even more shares.


The initial investors are in fact the debt holders as well because there becomes billions of shares available to be bought there is also dilution in the way of fractional shares for the ones who by at the bottom who buy a crazy amount of cheap shares to the ones who bought higher and didn't buy but used derivatives to short end up the big winners in the end and often in a ten year period a $1000 can turn into a million if they know what they are doing.