Wednesday, June 11, 2008

One more thing. I might need to "buy" more shares (thus diluting the return on investment) in order to make things work:

<$1K:
  1. Let's say I lose some satellites and have $75 left. Well, that's not enough for another satellite, so I'll invest more money up to the point that I can play a satellite (thus diluting the return on investment for everyone else). If I lose that one (and thus be out of money), I'll decide whether I want to invest more money (thus diluting return on investment even further) to play another satellite. Note that if I didn't do that, investors would have no chance of getting a return on their investment.
  2. The other possibility is that if we are close to the entry fee in terms of investment, I might simply supplement the pool to guarantee that I can pay the entry fee (thus diluting the pool). I'll dilute the pool only enough to buy the entry fee and play just one satellite.

>$1K:
  • I'll possibly dilute at each level ($1K, $2K, $3K, and $4K) only once in order to have enough money to buy a satellite. For example, let's say that somehow I get to $1,075. I'll buy enough shares to cover the difference between the satellite entry fee and the $75. If I lose, that's it--I'll just wait for the tournament. If I win and lose so that I'm back down to a total that doesn't give me enough money to play another satellite (for example, $1,050--$1K for the entry fee and $50 remaining), I'll stop and distribute the remainder after paying the tournament entry fee. If I win and go to the next level ($2K), I'll make up the difference only once to play a satellite, and so on...

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