The Offering Price vs. The Stock Market Price
iConsumer has two stock prices for its preferred stock, traded under the symbol RWRDP.
One, the offering price, is the price we must use (it’s required by SEC regulations) when you buy or earn stock directly from iConsumer. It is currently at $0.18. This means that when you get 1% stock back on a $100 purchase, you’ll earn 5.56 shares.
Example:
$100 purchase X .01 (rebate rate) = 1
1 / .18 (offering price) = 5.56 shares
The other number you’ll see and should care about, is the stock market price (usually just called the market price). That’s the price at which the general public is buying and selling RWRDP on the OTC market. This can be used to calculate market value.
Example:
# of shares (5133.5) X current market price ($0.11) = $564.68
You can see this for your own balance of shares and the current market price on the iConsumer Dashboard.
A bit of background on market price
If iConsumer used the old fashioned / traditional method of offering its stock to the public (instead using the easier, less expensive Regulation A+), then it would be allowed to have an offering price “at market”. That is, we COULD adjust the stock price we used to calculate rewards on a more frequent basis, using the market price and without having to file a new offering circular each time. We’ve actually built iConsumer to allow that.
3 Comments
Anthony, April 13, 2020 at 1:32 am
Does that mean when the market rises above $.18, let’s say $.50, consumers will still get a percentage based on the $.18? When will iConsumer decide to change over to the market value for rebates. Is there a way to more clearly state that consumers will earn a rebate percentage based on offering price rather just stating rebate amount because the amount difference is pretty drastic between offer and market values. If I’m supposed to care about market value, then I’m not receiving the percentage I thought I was.
Robert Grosshandler, April 13, 2020 at 8:45 am
Yes, the percentage is ALWAYS based on the offering price, by SEC Regulation. It’s not our choice.
If at some point in the future we’re allowed by the SEC to make an offering “at market”, then we’d use the market price. That will have some interesting complications. Do we use the price at the moment you buy? The closing price yesterday? The closing price today? An average of the closing price for the last week?
We state that we use the offering price on every page of the site. The app doesn’t do as good a job of that, but we haven’t yet found a better way to communicate it there.
We adjust the percentages frequently, and one of the things we try to take into account is the market price.
Lastly, the market price is so highly volatile, and the stock illiquid, and we hope that your focus is on the future … we’re really not trying to use the market price for anything. Which isn’t to say we’re not happier when it is high, and sadder when it is low. But it’s a long term play.
Anthony, April 17, 2020 at 12:34 am
Great response. Thank you. I’m happy to be an “investor”. I’m enjoying seeing my shares increase every time I shop. I’m almost at 10k shares. I hope to double that by years end since there’s nothing much to do nowadays except to look for great deals.