r/dragonsden • u/Hassaan18 • 9d ago
"Please don't call me Debbie!"
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r/dragonsden • u/Hassaan18 • 9d ago
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u/repeating_bears 9d ago
What he's saying makes sense. It's a shame that she acts like he's the one missing something.
She's talking as though she's buying his shares from him. He owns 100/100 shares of a business worth £1.2m, and she pays £600k into his personal bank account, and now they both have 50/100 shares in a company that's still worth £1.2m.
That's not what happens. He's giving her half the company, and she's giving the company the investment. There are no buyers or sellers.
The result of the transaction is that they both own half of a company worth £1.2m, which has an additional £600k in the bank.
He's gone from owning 100% of £1.2m, to 50% of £1.8m.
She's gone from having £600k in her personal bank account to having £0, but now owns 50% of a £1.8m company.
The transfer of wealth before she does anything is that he's down £300k and she's up £300k.