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‘Free’ stock is really free?
There are several ways that an outsider can contribute greatly to a company. They may bring their experience and insight from the industry, other organizations, and positions to the table.
Outsiders may be compensated for their service, generally in cash but sometimes with stock or options.
Mr.ABC offered free stock to Mr.Hua on his live stream, but he refused that.
Although Mr.ABC did not give any detailed information about this generous company, I may guess there is something related to the prevailing Peers Advisory Group On TikTok taking Mr.ABC’s context into consideration.
I believe he could expect his offer was met with a 99.99% refusal based on their mutual understanding. But he still gave it a shot.
For him, nothing was lost. However, if Mr.Hua said yes, then he would win the lottery.
It is not difficult to understand why Mr.Hua declined to accept his free stock.
If you accept ‘free’ stock, that means you may have significant obligations and liabilities if you have entered into a shareholders' agreement or some other contract.
No pains no gains. In practice, there is not really a free buffet. You are destined to pay it back in one way or another, such as your reputation.
Reputation conveys important information about the profit and long-term potential of a person.
Your reputation only can be built by a long-term effort, but it could be destroyed overnight.
Play a short-term game or a long-term game, it is your call.
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