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Every public company’s share price reflects the temporary balance between supply and demand. The reason for the sale
of the company’s stock is secondary to the act of selling. The reason the investor buys the shares is secondary to the
act of buying. Investors buy stock because someone has told them to do so. Usually shareholders and market professionals sell
stock to make a profit.
The shareholder’s viewpoint evolves. It’s based upon the performance of the share price. The investor buys stock
expecting it to appreciate. If the share price slowly declines, the shareholder’s attitude goes from a profit motive
to a breakeven motive. If the share price continues to decline, the shareholder’s desire becomes one of recovering some
of his or her lost risk capital.
The GVIC protects the majority of our public company shareholders from this seller’s psychosis, by encouraging them
to sell half their shares, when the share price doubles. If they do so, they no longer have a downside risk in holding the
balance of their stock in your company. This is the GVIC secret to building a $200,000 stock portfolio while risking only
$12,000. You are steadily recycling the same money as our members sell half their shares with the doubling of the share price.
The secret to a strong and sustainable share price is to limit selling. A company’s shareholders must understand and
share the corporate vision. Company management must give the shareholders reasons to hold their shares in their company. Assuming
they have recovered their risk capital, the only sellers of the company’s stock should be shareholders facing a financial
emergency, needing to raise money to meet personal obligations. And so, they sell their shares in the company.
The public company’s insiders must not sell their stock to the public. Insider sales increase the company’s float.
A bigger float increases the need for more buying to sustain the company’s share price. Creating buying costs money.
Over several years, the cost of creating that buying will offset the financial benefit to the insider of their share sales.
There’s a better way for your company’s insiders to maximize their profit, without adding to your company’s
float.
The SEC insider reporting requirements and limits on the sale of insider shares go beyond the educational limits of our website.
However, you should read the 144 Rule [http://www.sec.gov/investor/pubs/rule144.htm] Discuss the insider selling issues with
any attorney or stockbroker familiar with American Securities Regulations. However, by requiring the company insiders to
not sell their shares, we are protecting the GVIC members and their "no downside risk" portfolios.
The public can sell short any stock. There are more than twenty-four ways that market professionals can sell nonexistent
shares of public company stock into the Market. Unless company management plans to protect the share price against these risks,
the company’s float will increase and the costs of finding buyers will become very expensive. An effective poison-pill
defense against short sellers costs only a few thousand dollars. The failure to mount a defense can destroy the public company.
As a GVIC member, you will be part of the company’s poison-pill defense against short sellers.
Initial Public Offerings (IPOs) are risky, costly and dangerous. They are risky because over half of the IPOs never raise
money. They are costly because the underwriters use several techniques to ensure that they earn 25% to 30% of the money raised
in the IPO. And, they are dangerous because they open the door to short selling and the sale of nonexistent stock. There is
a better way to raise y for your public company. You’ll find it in Venture Capital Profits. As a GVIC member, you will
be part of the better way to fund public companies.
We’ve discussed the need to create buying under "Stock Support." If the public company limits selling and has a plan
based upon the Truth that results in buying, any public company will have a strong and sustainable share price. Do otherwise
and the public company will join the majority of companies that trade in the United States and fail between two and ten years
after they commence trading. As a GVIC member, you will be part of the success story of scores of public companies that sell
their companies at Market Capitalization making everyone a winner.
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