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Anonymous
Become the CEO of two companies worth $1 mil 2016-07-12 02:53:21 Post No. 1375909
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Become the CEO of two companies worth $1 mil 2016-07-12 02:53:21 Post No. 1375909
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Become the CEO of two companies worth $1 mil
Anonymous
2016-07-12 02:53:21
Post No. 1375909
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> Make company A with $100, split into 10,000 shares
> Make company B with $100, split into 10,000 shares
Your assets: 10,000 shares of A + 10,000 shares of B
Company A's assets: $100
Company B's assets: $100
> You are the majority shareholder in A and B
> Vote yourself CEO for life
> They're your shares you can do anything you want with them
> Give 9,999 of your shares of A to company B
> As CEO of B, accept the shares
> Give 9,999 of your shares of B to company A
> As CEO of A, accept the shares
Your assets: 1 share of A + 1 share of B
Company A's assets: $100 + 9,999 shares of B
Company B's assets: $100 + 9,999 shares of A
> Algebra mother fuckers
> A = $100 + (9,999 / 10,000)B
> B = $100 + (9,999 / 10,000)A
> subsitute and shit
> A = $100 + (9,999 / 10,000)*($100 + (9,999/10,000)A)
> distribute
> A = $199.99 + 0.9998A
> 0.00019999A = $199.99
> A = $1,000,000
> same shit with B
> B = $1,000,000
> A and B are each worth $1,000,000
> Good work Mr. CEO
>>
except that's totally forbidden to do since the whole Enron thing, you know?
Accounting student here. you gotta remove inter-company operations/results when making a joint balance sheet
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>>1375909
a1 =/= a2
you can't substitute the market value of A with the book value of A
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>>1375926
oops, I meant B in your example and vice versa
>>
>>1375909
cool story, now u wanna know how the big boys do it?
>start a company with 100 mill in funds
> generate tons of media hype
> issue more and more stock as the valuation rises with exitement
you probably sold at about 4-500 % still own half the company , retain your intitial invest ment, and let the board and shareholders do all the heavy lifting sustaining the value of the stock.
they will cuz they bought it at value and have so much to lose if the value drops.
retaining perhaps 20-30% of the company
for down the road when the company is actually real and has built infrastructure.
rinse and fucking repeat.
>>
>>1375909
>Implying this isn't illegal as fuck and easily detectable
>>
infinite monies
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