Replies to post #12814 on Energy Resource Abundance (ERAO)

[riverandfold]

Well it's quite simple...if they are getting ANY kind of equity in the deal they would want the pps to be low...and then once finalized they will let it run up to the proper value and make their profit. I think u already know this answer though. IMHO. ;-)

[russo123]

I only have the one post. I have no idea how the funding will be structured. We'll need to see how it's done.



See, this is what I'm talking about. Trading vs accounting.

If a fund takes a stock down from 0.05 to 0.02, when they close on the funding, they get stock based on some verion of the 3 or 5 lowest closing prices in the last 10 to 15 days, depending on how it's structured.

So, let's use a 50% discount, now they get stock at 0.01 (50% discount from 0.02), instead of 0.025, had the stock remained at 0.05.

hence, the trading vs accounting thing I was talking about. We are here to make money trading stocks right? Not having accounting classes.