Replies to post #45997 on lowtrade

[lowtrade]

You really need to understand the different forms of funding available to start up companies.

http://www.yourarticlelibrary.com/difference/major-difference-between-equity-shares-and-debentures/26217

https://strtp.com/types-of-startup-funding/

https://strtp.com/varieties-of-debt/


Home work. And this is just the basics.


What I post about is seen in the worst forms of funding.

Convertible debit, backed by share issuance and future discounted warrants. This type of funding locks up the company to very unfavorable terms that can burden company growth for years.
or
Share offerings creates one time (stock dilution).

These forms of funding put shares into big guys hands at deep discounts from market prices. Thus giving the big guy the ability to reep profits buy selling into that open market.

Then the price pull downs come from when insiders, to the funding deal, walk down the price to offer these big guys the discounts and huge gain possibilities at double and triple zero levels.. And with this knowledge they also load up low and sell into the runs created by these types of funding deals.