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by erentz 1818 days ago
What really sucks is I never got the opportunity to invest in PYPL at $0.001 per share. That’s the part that actually confused me. Sure its pre-IPO, but I’ve never seen any that are pricing their shares that low in the beginning, did I miss something?
1 comments
erik998 1818 days ago
oh yes the par value of stock...

https://www.nolo.com/legal-encyclopedia/what-is-par-value-st...

I think he went the route of his IRA's investment llc membership units being assigned a super large assignment of income distribution vs his initial investment.

just guessing...

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erentz 1818 days ago
I’m still not really following, what are you saying about assigning income distribution?

But so the way the article made it sound then is his IRA paid for the shares at par value ($1700 = 1700000 shares IIRC). Even though they were of course worth more than par value, so then he owes money to the company for the difference but if that wasn’t paid out of the IRA that would seem an incredible and surely illegal tax dodge so I don’t think that could be the case.

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erik998 1818 days ago
my bad you are correct,

https://sdirahandbook.com/self-directed-ira-investing/fund-s...

it is in section: Need to Know #1: Prohibited Transactions

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