Just a quick question regarding sellling shares. I'm failing misrebly finding the right info online...

Whats the standards for selling shares?? Ex: Mtt buy in is $100. Buyer buys $50, player plays $50 of his own. What % does the player ship back to the buyer if he/she cashes in the mtt. Lets say they cash for $200.

Thanks! glglglgl today.

ok, thats kind of what I thought but wasnt 100% sure. Thanks for the info!

 

Originally Posted by Iplaythabored

Pretty sure if u sold 50% he would get 50% of profit , unlike a normal long-term deal like okse is saying

i this were true the stake would be pretty useless and would be the equivilant of u playing a tourny thats half the buyin with ur own money

 

Originally Posted by Iplaythabored

Isn't that how baps work?

i dont rly deal with staking anymore so i could be remembering wrong but im pretty sure that in basicly any stake the staker never gets the full equity of the amount hes buying in for or it just doesnt rly make sense for the player to take the stake. he doesnt gain anything

 

Originally Posted by Iplaythabored

thats why people sell w/ shares marked up

so then we are both saying the same thing and just mixing up our lingo

i think we would both agree that if i buy $50 of the $100 buyin and he cashes for $200 i dont get back $100, correct?

 

Originally Posted by Gags30

okse is way wrong.

if your'e selling $50 of a $100 mtt for one mtt only, if someone buys $50 worth, they'd get 50% of your action

then how is it any different for the player than playing a $50 mtt with his own money. there would be zero gain for the player in taking this stake

 

Originally Posted by byoonz

because if you want to play a big buyin mtt, you can just sell part of yourself so you arent putting up a huge amount of your bankroll or anythin like that. and you can always markup so you make a lil bit

once u mark it up the staker doesnt have 50%

 

Originally Posted by okse54

once u mark it up the staker doesnt have 50%

am i thinking about mark up incorrectly? if you buy 50% of me in a $1K with 10% markup, you pay me $550 but you still have 50% of my action

 

Originally Posted by Gags30

last time i looked most $100 tourneys have a larger prizepool, yet fewer people to wade through than a $50 mtt

also, most people don't sell action for $100 mtts, and more do it for tourneys that are big, like let's say 1ks or like live shit like 10ks where first is a lot

Gags.. I was just using the $100 as an example for easy math. With out mark up I was just looking for the basic formula.

My thoughts were the player plays for 50% just like any staking deal and the other 50% is used for shares bought.. so 50% bought would actually be 25% for the buyer.

 

Originally Posted by okse54

generally the standard is to pay the staker 50% of the equity that hes buying after stakeback,

so in ur case since the staker is putting up 50% of the buyin he would be entitled to 25% of the profits

so if u cashed for $200 ud pay him back his original $50, and then out of the $100 profit ud pay him $25 so hed get $75 total

but obviously any stake can have any type of rules, its all about what the staker and player agree on.

This just sounds REALLY wrong imo.

If I buy 50% of someone, i expect to get 50% of the profits.

sort of off topic, but just be sure you dont sell 110+% of your shares and then TID and owe money, story of this happening a few years ago.

 

Originally Posted by okse54

so if u gave someone $100 for their $100 buyin (which i think a large portion of stakes are for the whole buyin), do u expect 100% of the profits?

well obv not. like someone said earlier the types of stakes that cover the whole buy-in are usually long-term agreements that involve make-up.

people sell shares to mitigate their financial risk. it's usually a one-time thing where the player wants to play something that is over their comfort level (for example ,me in the 3.5k WPT event coming up). gags is 100% right on the way these work, the investor gets the % of profit that he/she invested of the total buy-in. Sometimes the seller can charge a small mark-up (it usually seems to be 10-20%) to sweeten the deal for them - since they are the ones actually playing.

okse u are pretty far off in this thread.

If you buy 50% of someone you have 50% of what they cash for.

 

Originally Posted by byoonz

am i thinking about mark up incorrectly? if you buy 50% of me in a $1K with 10% markup, you pay me $550 but you still have 50% of my action

This is correct