Topic: [GLBSE] Buyback question (Read 1131 times)

Understood.  Thanks for the clarification.

You can buy back shares at arbitrary times. Just not arbitrary numbers, it's all or nothing.

When I was trading during the financial crisis, the entire mortgage industry was basically called out for being a giant ponzi scheme perpetuated by all manner of complex instruments.

On the days before TARP was announced, there was all manner of violent swings in the financials.  I couldn't resist so I picked a few up at highly distressed prices.  One of the ones I picked was Washington Mutual (WAMU).  In my mind, there was no way the government was going to enact legislation and not help the biggest mortgage servicer at the time.  The promise of TARP was that is would save the financial industry and stop the bleeding.

Sure enough, the day after TARP is announced, Sheila Bair at the FDIC announces that WAMU is in default and that the government is seizing everything.  The company is left worthless even though TARP promised to help.  There are similar stories if you bet on Bear Sterns. JP Morgan gets it for pennies on the dollar.  Lehman is left to explode.

Once the failure started, there was no stopping it until it was done.  The bankruptcy case of WAMU is still in the courts if I'm correct.  The fallout can take years.

That's the risk in these highly uncertain situations.  Lots of people were wronged by the Pirate fallout.  However, it is clear the situation was never right to begin with.  Correcting all of the wrongs will take drastic measures on the part of anyone that will survive long term.  Not correcting them means its the game is over.  Maybe not today, but likely very soon.

Just recently, Nasdaq reversed valid transactions and froze shares of Blockbuster after their bankrupt stock traded into a wild profit frenzy by likely manipulation.  Lots of people were lied to and wronged that day, but the damage was done long ago.

Ok. I got an official response from their help desk. 

Even though buyback are possible, you can't buyback arbitrary numbers of shares back at arbitrary times.

Cheers.

You can do forced buybacks.

Ideally in order of purchase if there is a mechanism for that.

How do you propose the selection of whose shares to seize this way is to be done?

-MarkM-

Perhaps a better way to phrase my question:

Is it possible to forcibly buy back arbitrary portions of the outstanding shares at a predetermined price?  Specifically, shares that are held, but not offered in the market.

For example, can a listing be offered at 1.0 BTC but be repurchased at anytime for 1.05 BTC regardless if its listed on the ask or not?

The asset still exists after a buyback if that's what you're asking. Something like how PPT.A-E operated? They would each sell a number of shares and then one month later buy all the shares back, then the asset would be recycled and used the same way next month (I think they actually reused them the next day in most cases).

If you're asking if you can buyback a portion of the outstanding shares: I'm not sure, but I believe it's possible. Hopefully someone who knows can clarify if this is what you're wondering.

Is it possible to have a listing on GLBSE that can be repurchased by the issuer on a ongoing basis instead of on a particular date?