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smickles
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March 26, 2012, 11:50:42 PM
 #1

Financial Reports
April
May
June
July
August
September

Officers

Insider Actions

Quote from: original_post
Splatster and I are proud to announce the launch of S² Capital Management!

The IPO has already started on GLBSE!

What is S² Capital Management?
S² Capital Management is a bitcoin investment fund that focuses primarily on fixed-income bitcoin securities, which aims to provide steady returns at higher rates than many bitcoin investments.  To maintain our goal of protecting shareholders from the default risk of downstream institutions, S²CM maintains a reserve account that can be used to cover all or a portion of potential defaults and protect shareholders from losses.  The following sections lay out in greater detail the structure of the fund.

What is your capital used for?
The capital raised from public share issuances is deposited with various borrowing institutions that pay interest for the duration of said deposit.

Where exactly is S² Capital Management's capital going to go?
The capital raised will be distributed among the following institutions, in accordance with the management’s views on riskiness and profitability of each.
The Lenders are:
  • Banco de Kluge
  • First Pirate Savings and Trust
  • Hashking's Lending and Deposits
  • Imsaguy
  • Starfish BCB

What issues do you consider when deciding on fund allocation among institutions?
Each institution provides a different interest rate, payment interval, among other varying terms.  This information is to be kept confidential at the request of our borrowers.  The factors we consider when determining the distribution of funds in order of importance are: risk of default, interest rate, duration of deposit, among other things.

What interest rates do you get from the various institutions?
Our downstream partners have requested that we not discuss the interest rate each individual provides.  However, the total interest for all funds is made public each month.  Based on the numbers we have, the fund should generate approximately 10-15% on the invested funds each month.

What is the benefit of investing with S² Capital Management over solo investing?
One major benefit is capital diversification among multiple borrowers. This provides a significant reduction in expected losses due to borrower default. Additionally, by combining investor funds, we may be able to negotiate better interest rates than small individual investors would on their own.  Further, the fund maintains some of its own capital in reserve to cover potential default losses in case they occur, up to the maximum of the reserve account.

How can I be sure you won't be putting my money in risky investments?
We have strong incentive to do our research on each and every institution because splatster’s capital is on the line. splatster has funded a reserve account of 100 BTC to cover any potential failed investments with his personal money. The amount of this account will increase if/when more shares are issued as described in the fund's terms.

What if an investment institution defaults?
In the scenario of some institution defaulting on its obligation, the fund would cover the losses up to the total amount of the reserve account (currently 100 BTC). If the loss is less than 100 BTC, the shareholders would lose absolutely no money. If a default is greater than 100 BTC, the loss would still be significantly mitigated by the reserve account.

What if ALL the investments go sour?
In this situation the fund would lose the money, less the amount splatter has pledged to cover via the reserve account. If the fund were to be liquidated at this time, the shareholders will experience losses, but still less than if they had invested solo.

The Terms are as follows:
Quote
The owner of this certificate (here after known as "THE OWNER") holds one share of "S² Capital Management" (hereafter known as "THE FUND"). Each share of THE FUND entitles its owner to a portion of the distribution of the net gains (hereafter known as "THE DIVIDEND") generated by THE FUND. Additionally, each share of THE FUND conveys limited voting rights.

THE FUND will attempt to generate gains by investing its capital in various Bitcoin borrowing institutions (hereafter known as "THE INVESTMENT").

THE INVESTMENT may also take advantage of various instruments to prevent loss. Should THE INVESTMENT incur any loss, the first 100 BTC (hereafter known as "THE RESERVE") of such losses will be recouped from a guarantee (hereafter known as "THE GUARANTEE"). THE RESERVE may change in the future subject to follow-up share offerings, as described below.

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.

THE GUARANTEE is a contract between THE FUND and Zachary J. Snow, also known as "splatster". The intent of THE GUARANTEE is to secure THE FUND against potential losses up to the value of THE RESERVE. Should THE FUND issue further stock beyond the initial public offering, THE RESERVE will increase by an addition of ten sixty-firsts (10/61) of the value of the shares at such an issuance (the same proportion as the initial issuance of shares). THE GUARANTEE will not be responsible for any losses beyond THE RESERVE for the entirety of THE FUND as a going concern.

THE FUND will be managed by two officers, the Investment Officer and the Financial Officer. The Investment Officer will be responsible for directing the actions of THE INVESTMENT. The Financial Officer will be responsible for THE FUND's financial accounting, including the presentation of financial reports to the shareholders of THE FUND.

The voting rights granted to THE OWNER extend to two points. THE OWNER may raise a motion to dissolve THE FUND and THE OWNER may vote on such a motion raised by any shareholder. THE OWNER receives one vote for each share of THE FUND which THE OWNER controls.

THE FUND will issue financial reports to the shareholders on the 16th day of each month.

THE DIVIDEND will be distributed to the shareholders on the 17th day of each month. The amount THE DIVIDEND will be the total amount of revenue accrued since the previous distribution of THE DIVIDEND less any expenses.

What if I have a question you didn't answer above?
Feel free to ask any relevant questions you have in this thread.  One of us will answer your questions as soon as we can.

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splatster
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March 26, 2012, 11:52:25 PM
 #2

The GLBSE listing is up.  The problem is that GLBSE hasn't put the IPO's shares up for sale yet, and we have no control over this.  Please place any buy orders at 1 BTC, anything less will not be filled.

Update: We are still waiting for GLBSE to respond to our messages requesting that they help us sort out the problem.  We're sorry for the inconvenience.

Update 2: Problems have been sorted out!  Shares are now for sale on GLBSE at https://glbse.com/asset/view/SS.

Update 3: After some intense talking in IRC, we have decided that all future IPOs will be done at the going market rate.

A fair amount of discussion goes on in our IRC channel, #S2CM.  That's probably one of the best places to discuss things or ask questions regarding S² Capital Management.

S² Capital Management | #bitcoin-otc ratings | 1M5j2g4iz4mSwkngrYkqtcmKNGmyDAQzk2
smickles
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March 27, 2012, 04:10:37 AM
 #3

For those who are interested, here is a signed copy (my signature) of the terms. I will also update the GLBSE listing's terms with my signature if I am able to.
-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

The owner of this certificate (here after known as "THE OWNER") holds one share of "S² Capital Management" (hereafter known as "THE FUND"). Each share of THE FUND entitles its owner to a portion of the distribution of the net gains (hereafter known as "THE DIVIDEND") generated by THE FUND. Additionally, each share of THE FUND conveys limited voting rights.

THE FUND will attempt to generate gains by investing its capital in various Bitcoin borrowing institutions (hereafter known as "THE INVESTMENT").

THE INVESTMENT may also take advantage of various instruments to prevent loss. Should THE INVESTMENT incur any loss, the first 100 BTC (hereafter known as "THE RESERVE") of such losses will be recouped from a guarantee (hereafter known as "THE GUARANTEE"). THE RESERVE may change in the future subject to follow-up share offerings, as described below.

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.

THE GUARANTEE is a contract between THE FUND and Zachary J. Snow, also known as "splatster". The intent of THE GUARANTEE is to secure THE FUND against potential losses up to the value of THE RESERVE. Should THE FUND issue further stock beyond the initial public offering, THE RESERVE will increase by an addition of ten sixty-firsts (10/61) of the value of the shares at such an issuance (the same proportion as the initial issuance of shares). THE GUARANTEE will not be responsible for any losses beyond THE RESERVE for the entirety of THE FUND as a going concern.

THE FUND will be managed by two officers, the Investment Officer and the Financial Officer. The Investment Officer will be responsible for directing the actions of THE INVESTMENT. The Financial Officer will be responsible for THE FUND's financial accounting, including the presentation of financial reports to the shareholders of THE FUND.

The voting rights granted to THE OWNER extend to two points. THE OWNER may raise a motion to dissolve THE FUND and THE OWNER may vote on such a motion raised by any shareholder. THE OWNER receives one vote for each share of THE FUND which THE OWNER controls.

THE FUND will issue financial reports to the shareholders on the 16th day of each month.

THE DIVIDEND will be distributed to the shareholders on the 17th day of each month. The amount THE DIVIDEND will be the total amount of revenue accrued since the previous distribution of THE DIVIDEND less any expenses.
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stochastic
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March 27, 2012, 06:47:25 AM
 #4

1.  Do you return any dividends to shareholders? (I must not be able to read capital letters)
What percentage of dividends is returned to shareholders?
2.  Are more shares going to be issued in the future or is this ideally a closed-ended fund?
3.  Are you going to short bitcoin to hedge against fluctuations in the BTC/USD exchange rate?

Introducing constraints to the economy only serves to limit what can be economical.
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March 27, 2012, 07:02:15 AM
 #5

your answer too #1 is right above you Roll Eyes
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March 27, 2012, 07:04:26 AM
 #6

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.
splatster
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March 27, 2012, 07:07:28 AM
 #7

1.  Do you return any dividends to shareholders? (I must not be able to read capital letters)
What percentage of dividends is returned to shareholders?
2.  Are more shares going to be issued in the future or is this ideally a closed-ended fund?
3.  Are you going to short bitcoin to hedge against fluctuations in the BTC/USD exchange rate?

One of the fund's primary goals is to generate positive bitcoin returns.  Putting the fund's money in very risky things like options is not good for investors.

S² Capital Management | #bitcoin-otc ratings | 1M5j2g4iz4mSwkngrYkqtcmKNGmyDAQzk2
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March 27, 2012, 07:08:13 AM
 #8

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.

Introducing constraints to the economy only serves to limit what can be economical.
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March 27, 2012, 07:11:34 AM
 #9

1.  Do you return any dividends to shareholders? (I must not be able to read capital letters)
What percentage of dividends is returned to shareholders?
2.  Are more shares going to be issued in the future or is this ideally a closed-ended fund?
3.  Are you going to short bitcoin to hedge against fluctuations in the BTC/USD exchange rate?

One of the fund's primary goals is to generate positive bitcoin returns.  Putting the fund's money in very risky things like options is not good for investors.

If I invest in S2 I am making 2 investments.  Betting that your fund will make money and that bitcoins will hold or increase in value.

Introducing constraints to the economy only serves to limit what can be economical.
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March 27, 2012, 12:06:37 PM
 #10

I have a buy order for 1 before the IPO is available. Lets see what happens.
splatster
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March 27, 2012, 02:27:07 PM
 #11

I have a buy order for 1 before the IPO is available. Lets see what happens.

Thank you for holding tight while we try to get this sorted out.  Nefario said he would try to help us last night, but no luck there.  I will update this thread once we have word on what's going on with GLBSE and our IPO.

S² Capital Management | #bitcoin-otc ratings | 1M5j2g4iz4mSwkngrYkqtcmKNGmyDAQzk2
smickles
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March 27, 2012, 04:24:23 PM
 #12

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

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March 27, 2012, 06:03:11 PM
 #13

And S²CM is now trading live on GLBSE. https://glbse.com/asset/view/SS

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March 27, 2012, 09:18:33 PM
 #14

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


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March 27, 2012, 09:24:11 PM
 #15

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


Yes, the officers of the fund get more shares, but it's not for free. There is more work involved in managing more BTC. Also, you do not need to maintain your % of shares in order to maintain your return on investment.

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March 27, 2012, 09:26:25 PM
 #16

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


Yes, the officers of the fund get more shares, but it's not for free. There is more work involved in managing more BTC. Also, you do not need to maintain your % of shares in order to maintain your return on investment.
Also, from Splatster's perspective, in addition to more work, there is more risk because the guarantee increases.

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March 27, 2012, 09:33:32 PM
 #17

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


Yes, the officers of the fund get more shares, but it's not for free. There is more work involved in managing more BTC. Also, you do not need to maintain your % of shares in order to maintain your return on investment.

More work, yes. Twice the work? doubtful. I would like to see this revised to require the amount granted to the officers be included in the motion for issuance of new shares and up for discussion.

Don't get caught up in the game and have a nice day!
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March 27, 2012, 09:37:42 PM
 #18

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


Yes, the officers of the fund get more shares, but it's not for free. There is more work involved in managing more BTC. Also, you do not need to maintain your % of shares in order to maintain your return on investment.

More work, yes. Twice the work? doubtful. I would like to see this revised to require the amount granted to the officers be included in the motion for issuance of new shares and up for discussion.

It is less that it is more work, but instead that the guarantee doubles.  For every issuance of 500 public shares, I put another 100 BTC of my own money on the line.

S² Capital Management | #bitcoin-otc ratings | 1M5j2g4iz4mSwkngrYkqtcmKNGmyDAQzk2
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March 27, 2012, 09:42:10 PM
 #19

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


Yes, the officers of the fund get more shares, but it's not for free. There is more work involved in managing more BTC. Also, you do not need to maintain your % of shares in order to maintain your return on investment.

More work, yes. Twice the work? doubtful. I would like to see this revised to require the amount granted to the officers be included in the motion for issuance of new shares and up for discussion.
actually, from the accounting side, it could very easily be literally twice the amount of work.

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March 27, 2012, 09:45:42 PM
 #20

answer #2 is above you too

THE FUND will raise capital by issuing 610 shares of stock. 500 shares will be offered to the public at a price of 1 bitcoin each. 110 shares will be distributed to the officers of THE FUND. The shares withheld for the officers of THE FUND are identical to the shares offered to the public and convey the same rights as to any owner of the shares. THE FUND reserves the right to issue further stock to raise additional capital for THE INVESTMENT. Should THE FUND issue stock in this manner it will maintain the ratio of shares offered to the public and shares withheld for its officers.


Yea I was hoping for a more concrete answer from the operators.  It seems when a lot of companies on GLBSE offer more shares they are not completely sold out.
If we do issue more shares, it will only be if there is sufficient demand to sell all the issued shares and it would be under the same arrangement as the initial shares in order to avoid dilution.

Sorry for being noob here, but I don't get what 'maintain the ratio of shares offered to the public and shares withheld for its officers' means here. Say I hold 10% or 61 shares and THE FUND decides to issue another 610 shares, does this mean the OFFICERS OF THE FUND get their new 110 shares for free to maintain the ratio and I need to buy another 61 of the new shares to stay at 10%  Huh


Yes, the officers of the fund get more shares, but it's not for free. There is more work involved in managing more BTC. Also, you do not need to maintain your % of shares in order to maintain your return on investment.
Also, from Splatster's perspective, in addition to more work, there is more risk because the guarantee increases.

I see, but this is not how it usually goes. If new shares are issued, the existing holders get the chance to buy new shares with a given ratio according to already held ones. But typically none (including management aka the OFFICERS OF THE FUND) get shares for free.

Say I'd jump in big and buy 306 shares today. Next week you decide to issue 6100 new shares, you then have 1210 shares and I can't do anything about it with my previously 50%+ held shares getting down to 4.5%. Sounds fishy to me...

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