I've always read the deals to mean that the seller
Post# of 36566
(Total Views: 184)
Posted On: 10/02/2019 5:32:15 PM
I've always read the deals to mean that the seller accepted the value of GNBT stock to be $2.50, and received the number of shares at $2.50 that equaled the selling price (if it was an all stock deal).
The seller then has motivation to make the company perform well, because if GNBT's stock pps goes to $5, they have doubled the value of the price of purchase.
Same concept that stock based compensation gives management - make the company do well, the stock pps goes up, and the value of the shares you hold increases.
The seller then has motivation to make the company perform well, because if GNBT's stock pps goes to $5, they have doubled the value of the price of purchase.
Same concept that stock based compensation gives management - make the company do well, the stock pps goes up, and the value of the shares you hold increases.
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