(1)
I hold one GW share. IPO price is $100, current price is $150.
On my stock turn, I buy one GW and then sell two, spending $100 and
receiving $300.
This kind of thing is legal in 1830 but not in 1856.
(2)
Imagine that we are sitting at my kitchen table playing 1856. With my
left hand I purchase a GW share. While I am still holding that share
in my left hand, with my right hand I sell one or more GW shares that
are sitting on the table in front of me. This is legal in 1856.
Does that make the distinction clear?
(There's a further subtle distinction: If the only certificate in
front of me is the 20% President's certificate, I can buy a share with
my left hand, and then with my right hand peel off one imaginary share
from the President's cert and sell that, letting the 10% in front of
me and the 10% I just bought magically rejoin into the President's
cert. This is not obvious from the text of the rules but has been
clarified in addenda.)
The net effect is fairly important: If I am trying to take advantage
of arbitrage opportunity, or just to trash another player's stock
prices, I need to assess the risk that a share I buy may be worth less
than what I paid for it by the time I have an opportunity to sell it.
- Aliza
On Thu, Mar 11, 2010 at 11:38 AM, Chris Shaffer <chr...@gm...> wrote:
>> I understand the quoted rule from the rulebook that I am only
>> allowed to sell
>> the number of shares which I had in my portfolio at the beginning of
>> my turn
>> and not the one I just bought. Next turn I am free to sell that
>> additional
>> share/certificate.
>
> Correct. You might more properly say "the number and type of shares..."
>
> --
> Chris Shaffer
>
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