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BillBrasky Memorial Political Chat Thread

Can someone explain how this is an "enormous transfer of value from [investors]... to Trump?"

It's not like investors have put billions of dollars into this, right?
 
Yes, the investors put money into company A in the very simplified example below.

Company A is a blank check fund with cash put in by investors.

Company B is truth social, a private company in which Trump owns a large percentage of the (currently basically worthless) shares

Company A and B merge, that cash inflates the net asset value of the newly combined entity, meaning the previously worthless stock is now worth a lot more.
 
This is probably a good situation for a real expert to post something more accurate than what I’m pretending to do.
 
06deacon said:
Yes, the investors put money into company A in the very simplified example below.

Company A is a blank check fund with cash put in by investors.

Company B is truth social, a private company in which Trump owns a large percentage of the (currently basically worthless) shares

Company A and B merge, that cash inflates the net asset value of the newly combined entity, meaning the previously worthless stock is now worth a lot more.
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ok, that definitely helps. What about Company A makes it cash rich? How do you measure the assets of a “company” (which doesn’t produce anything or report a profit”)?
 
myDeaconmyhand said:
ok, that definitely helps. What about Company A makes it cash rich? How do you measure the assets of a “company” (which doesn’t produce anything or report a profit”)?
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measurement of the assets and the net worth of any entity, company or individual, doesn’t really have anything to do with income. It’s just a point in time calculation of assets minus liabilities, financial accounting wise.

If a person has $100 in a checking account and no debt and no income, their net worth is $100

Similarly company A can have assets of say $5 billion of cash, minimal other assets or debt and doesn’t do anything to make money so the value of the company would be that $5 billion
 
So Company A is at risk of losing actual money? Or are their assets also fuzzy?
 
myDeaconmyhand said:
So this 3-4 billion dollar gain that’s being attributed to Trump from this merger is completely dependent upon him unloading his shares in the small window of time while the company maintains its obviously bullshit valuation.
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Someone said he has to wait 6 months. He'll probably find a way out of it though
 
PhDeac said:
So Company A is at risk of losing actual money? Or are their assets also fuzzy?
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Im not sure what you mean by fuzzy. The company A in trumps example is an actual public entity registered with the SEC with real financial statements and real audited cash balances. Now yada yada maybe they’re bullshit financials and the auditors are enroning it but basically no, they’re legit.

So when these companies merge, could these company A investors who now own stock in the combined entity lose their shirt? Yeah sure. Once this stock starts trading and it’s obvious what a dog this is and it tanks, if they hold it they’d lose bigly. So I’d suspect they and trump might try to sell a lot of their shares like instantly.
 
06deacon said:
measurement of the assets and the net worth of any entity, company or individual, doesn’t really have anything to do with income. It’s just a point in time calculation of assets minus liabilities, financial accounting wise.

If a person has $100 in a checking account and no debt and no income, their net worth is $100

Similarly company A can have assets of say $5 billion of cash, minimal other assets or debt and doesn’t do anything to make money so the value of the company would be that $5 billion
Click to expand...
so what you are saying is
IMG_0125.gif
 
Yeah like I originally said, when this GameStop quality ship inevitably hits the iceberg it’s not going to be the sharps or trump left holding the bag.
 
06deacon said:
Yeah like I originally said, when this GameStop quality ship inevitably hits the iceberg it’s not going to be the sharps or trump left holding the bag.
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but do the people buying it actually care? It's basically another way to donate money. It's a massive laundering operation.
 
Who actually buys the stock when trump tries to offload it? His name and “belief” in it is what artificially inflates. As soon as he wants out everyone that stuck around also wants out and nobody is there to buy it up at that large a volume.
 
Yeah makes you wonder…about who the original investors in this SPAC were, as well as who’s going to buy this shit in any substantial quantity other than the initial meme stock frenzy and the moron trumpers who would otherwise be buying Hummel dolls or stuff off infomercials.
 
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