Jesse Powell on Twitter: "@charlescaverne In the prop scenario, the company buys at a 20% discount and sells at a 10% discount, making a 10% profit for the company." / Twitter

Question for anyone holding stock. A private company has an offer from an investor to buy shares at X, which the company feels is 10% undervalued. However, the company knows of a shareholder (could be you or someone else) who would sell at a 20% discount. Should the company:

tell seller $offer, intro
16.6%
broker midpoint + fees
12.9%
prop buy low, sell high
24%
see results
46.5%

867 votesFinal results

Charles Caverne

@charlescaverne

Nov 10, 2020

The company would be selling low (-10%) and buy high (+20%) no ?

Jesse Powell

@jespow

Replying to

@charlescaverne

In the prop scenario, the company buys at a 20% discount and sells at a 10% discount, making a 10% profit for the company.

11:50 PM · Nov 10, 2020Twitter Web App

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