Quote:
Originally Posted by Snapolit1
I don't see where buying 1/5000 of a card for $500 is any stupider than buying an entire card for $2.5M. If it goes up, great deal. If it doesnt, not so much. Seems to be the exact same concept behind mutual funds.
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The problem is that the “investors” were underwater from the beginning. The fair market $2.5M card received a premium pricing increase (e.g. to $3.0M) before the shares were purchased and distributed. Thus, the “investors” needed significant appreciation just to get back to the cards real word market value.