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I'm not sure if I would particularly care that it was just an edge case that caused me to miss out on $99M. They wouldn't take shares, but I would be forced to
by googlryas 4y ago
I'm not sure if I would particularly care that it was just an edge case that caused me to miss out on $99M.
They wouldn't take shares, but I would be forced to sell shares in order to pay the tax bill, because I don't actually have that money just laying around. So I had 10M shares @ $1/share, share prices go up to $100/share. I get hit with a $900M tax bill and sell 9M shares in order to pay it. Price goes back down to $1/share, leaving me with 1M shares. How exactly should I purchase more at a pittance? I spent all the money I didn't even have paying the tax bill, there's nothing left in my bank account to buy any shares.
- Apocryphon 4y agoBuy it on margin, if the price has gone down so low you can easily get it approved
- googlryas 4y agoTaking out a loan against an asset to buy more of that asset sounds like a horrible financial move.
- Apocryphon 4y agoYou can use your existing 1M shares as collateral
- googlryas 4y agoRight...use your shares in XYZ as collateral to take out a loan to buy more shares of XYZ. That sounds like horrible financial advice.
- Apocryphon 4y agoIn the grim future of the strawman, many such cases abound
- googlryas 4y agoStill not sure where the straw man was.
- Apocryphon 4y agoSsh. It’s okay. It can’t get to you now.