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Hi Monica,
I sounds legal to me. A company can give a cash reward for referrals.
There is no reason why you can't transfer the cash to a dividend
reinvestment plan (DRIP) and buy stock directly from the company.
Is it worth it? Maybe not. They are giving you $10 for each
referral, not a share of stock, "if and when" they go public. As long as
the market for Internet IPO's remains hot they will probably go public
sooner or later, so you will probably get the money. So lets say you get 20
former friends to sign up and have a $200 credit (the max. is $500). If the
IPO is priced at $20 and opens at $50, you could buy 4 shares. Based on the
history of most IPO's you could be buying at the high and would be better
off with the cash. Naturally, the stock could double and split a dozen or
so times until this bubble bursts and you could do quite well. The point
is to understand what you are really getting.
Good luck and good trading,
Ray Raffurty
-----Original Message-----
From: Sawyer <monica@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Thursday, March 25, 1999 1:26 PM
Subject: Free Share?
>Hi Everyone!
>Has anyone ever seen anything like this before? I don't understand how
this works. Is it legitimate?
>Thnks for your help,
>Monica
>
>This company is giving away free shares, like Yahoo did at
>its launch (the last company which tried this is now listed on
>the NASDAQ)
>
>1. Go to http://www.monsterbook.com/SignUp2.asp which is a
>known and respected company.
>
>2. Enter referral No.256798 when you sign up for a free
>internet directory.
>
>3. Once you sign up you will get your own number and for
>every person you get to sign up, you will receive $10!
>
>Hurry, they are only taking a certain number! (first one
>million people) and when I went in today, it was already over 100,000.
>
>So get in quick !
>
>Referral # 256798
>
>Note: CNBC says this company will go through the roof
>when it launches...
>
>Good luck!
>
>Terry
>
>
>
>
>
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