The Arthur Lipper Price Change Standardized Wagering* (ALPCSW) online brokerage approach allows bettors to select which of two stocks or stock market averages will do better by the end of an agreed period. The standard betting unit is US$200, and dividends are reflected in calculating the per share price change.
The loser of the bet suffers a 100% loss of $200. The winner of the bet receives $380, a return of the amount wagered, plus $180 from the $200 the loser of the bet lost. The $20 deducted from the winner covers the fee for arranging the bet with another bettor and reimbursement of administrative and marketing expenses. The wager is between two parties, each of whom have deposited $200 with the firm offering the brokerage service.
The initial standardized betting unit is for 180 days. There is always a winner and a loser, The winner has a high return on the amount wagered and the loser a 100% loss. The loser cannot lose more than the amount wagered and deposited with the broker, addressing, and allaying the concerns of regulators.
It is important to understand that no securities are purchased or sold because of the wager. Therefore, the number of betting units involving any stock, would not have any direct effect on the price of the securities.
Bets can be for a percentage of performance as: the percentage change in the price of AMZN versus 200% of the SP500. The bettor could respond to the quote by offering to bet only if the SP500 was set at 150% or even just the same as AMZN. The function of the online website betting platform-broker (bookmaker or casino) will be to facilitate the bettors agreeing on terms of the wager.
Those recommending the purchase of a stock = might be willing to bet that the performance of the stock would do better than X% of the SP500 or some other index or stock by the end of the betting period.
Of course, the wager is one of relative performance and that means both increase or decreases in relative value. Declines of a lesser percentage than the other stock would be a win for the better.
I believe the online brokerage services offered by ALPCSW, as described above, can become a significant business for the broker, as the service to be provided is clearly capable of generating significant gains for the winners. We welcome conversations with those with whom we might affiliate.
Arthur Lipper, Chairman
British Far East Holdings Ltd.
14911 Caminito Ladera,
Del Mar, CA 92014
+1 858 793 7100
arthurlipper@gmail.com
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