User Forum Posts

Thanks for catching the typo. Even if the PS3 sells 20 MILLION units for both Christmases (which is extremely unlikely) then it still needs to sell 93 million more units from Jan 2009-Nov 2009. This will amost certainly not happen: 1) 20 million need to be sold this Christmas 2) After selling 20 million units for Christmas, they will have to sell 8,500,000 units for eleven strait months 3) After selling 117 million units in 12 strait months, they will still have to sell 20 million in Dec 2009. 4) Let's face it; there are not 150 million people who WANT to buy a PS3!

:O Thanks, missed that. So it's a short for sure.

Reading the forums, thats what everyone seems to think. But is there any actual proof that this is the case? The Payout line of the stock is rather ambitious, and can easily mean either.

Although you are right, you miss understand what shorting a stock does. When you short a stock you are not betting that the stock will pay out at zero.The definition of shorting a stock is betting the negative option comes true. The misconception is because usually the stock pays out at zero when the negative comes true. Since the stock pays out when the negative come true (the opposite of most stocks) then when you short the stock you are betting that the stock does pay out, and when you buy the stock you are betting it will not pay out. This is not the first time I have seen people get confused by this, and many have lost money due to it. I think in the future it would be better if stocks are always worded so that they pay out when the proposition comes true, thus avoiding the confusion.

"New props shall have two clearly defined possible outcomes, where payouts at POP$100 and POP$0 are both possible. (SCRABULOUS currently doesn't meet this criteria as it does not have a possibility to pay out at POP$100.)" Actually this is possible; if the makers of Scrabble (Hasbro I think?) drop the case, or grant the makers of Scrabulous usage of their trademark, then it would obviously not be removed, thus the stock would pay out at $100. A better way to make the stock would be: This proposition will pay out at POP$100 if Facebook announces that Scrabulous will not be removed from Facebook.